Empowering Kenyan Women through Microfinance

You have probably heard about microfinance in the past but have never given it much thought. Well, the term microfinance stands for institutions lending financial services such as microloans, savings, and insurance. These services are available to an average Kenyan who doesn’t have a salary.

Since their establishment in Kenya, microfinance institutions have helped many Kenyans establish businesses and improve their financial status. Self employed mama mbogas, single mothers and other low income earning women are the greatest beneficiaries of microfinance.

How can women benefit from Microfinance? Through joining hands and creating “chamas,” women can save with microfinance institution of their choice. After their money has accumulated to the desired amount, they secure microloans which help them start or expand their businesses. This way, many women have been able to provide for their families and even support their husbands in starting projects.

Microfinance institutions have lifted the need of collateral while applying for microloans. This lift has been one of the biggest benefits Kenyan women have had to enjoy. The average Kenyan woman has been able to save the little she gets on a daily basis and finally use it to secure a small loan. This is what has led to many women being in business today.

Microfinance institutions such as Faulu Kenya have further supported women's education through the provision of education policies.

Other general benefits of microfinance institutions include; Access to small loans- microfinance institutions are governed by the philosophy that even small loans can help you avert poverty. Unlike banks, you can secure small loans with little or no collateral at all through a microfinance institution.

Better loan repayments rates- it will be unlikely that a woman can default paying her loan. For this reason, microloans are available at low and favorable rates. Job creation- with as little as Kshs. 5,000, a woman can start a business, extend it with time and create employment opportunities for the benefit of the entire community.

MFI continue to offer support to many Kenyan women and their services get better by day. Improvement in services is geared by stiff competition in the sector. With the recent law that forced banks to lower loan interest rates, made it hard to an average earning Kenyan to secure a loan. The result will be more people turning to MFI’s.

Do you have a realistic business idea but lack funds? Or are you an upcoming entrepreneur and looking for an expansion loan? Pop in one of the many MFI and ask for information about their money lending services and requirements. We will probably meet one day after your business has already flourished.

#FlorenceKarimi