The Kenyan Government has established a USD 16 million (Sh 1 billion) fund, called the Women’s Enterprise Fund, to support microfinance institutions (MFIs) that lend to women and women’s enterprises. At the launch, the government announced the allocation of the first USD 8 million (Sh 500 million), with USD 3.4 million (Sh 215 million) going to established MFIs and the rest being spent on fund administration and providing 210 constituencies with money to disburse at a local level.
Out of the MFIs who were allocated funds, the Kenya Women Finance Trust received the largest amount, with USD 700,000. Microcapital recently reported how this MFI has begun the transformation into a commercial bank. Other recipients were the Family Bank (USD 500,000), Kenya Industrial Estates (USD 500,000), Co-operative Bank (USD 485,000), Small and Medium Micro-Enterprise Programme (323,000), K-Rep (USD 80,000), Pamoja Women (323,000), Business Initiative and Management Assistance Services (USD 160,000), Jitegemea Credit Scheme (USD 80,000), Gusii Farmers Rural Sacco (USD 97,000) and Jitegemea Credit Scheme and Taifa Sacco Society Limited.
At the launch, The Minister for Sport and Gender, Mr Maina Kamanda, said that the loans provided from the Fund should charge 8%, with no additional fees added on by the intermediary. He also added that although contracts would be defined by each provider, the government was recommending that all the loans be paid back in full before three years. He also pledged to triple the Women’s Enterprise Fund’s kitty to USD 48 million (Sh3 billion) next year.
Newspapers in Nairobi that reported the launch questioned whether the Fund and the timing of the announcements were engineered for political purposes. Kenya goes to the polls on 27 December with both national legislative and presidential ballots taking place. Commentators have said it is too close to whether the incumbent President Mwai Kibaki will win, or his closest rival, Raila Odinga.
Amy Rennison, MicroCapital writer
Additional Sources:
The East African Standard:
http://allafrica.com/stories/200712131244.html
The Nation
http://allafrica.com/stories/200712131262.html
The Business Daily:
http://www.bdafrica.com/index.php?option=com_content&task=view&id=4893&Itemid=5812
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