The authors of this study conducted a client-level analysis to examine differences in the investment behavior of female and male microcredit users in Kenya. The scope included data on 21,000 clients of a microcredit programme led by Agrics Limited, a Kenya-based agricultural firm.
The researchers found that the majority of female farmers used their loans to purchase products, such as post-harvest technologies, that were less expensive than those male farmers bought. The more costly items that male clients purchased included solar panels and hybrid seeds.
The study also indicated that female and male farmers may adopt different strategies when accessing microcredit programmes. For example, male farmers tended to place larger down payments on new loans, but women had higher repayment rates. Given women’s better repayment histories, the authors argue that empowerment through microcredit in this context is more cost-effective when targeted toward women. Further, the authors argue that stakeholders can increase the viability of microcredit programmes in rural Kenya by increasing their focus on goods and services preferred by female farmers. For example, microlenders can prioritize lending to support purchases of affordable products related to necessities such as health, sanitation and agriculture.
This is a summary of a paper by Keiji Jindo, Jens A Andersson, Foluke Quist-Wessel, Jackonia Onyango and Johannes W. A. Langeveld; published in Food Security; August 2023; 16 pages; available at https://link.springer.com/article/10.1007/s12571-023-01394-0.
By Vaughn Rajah, Research Associate
Additional Resources
Food Security webpage
https://link.springer.com/journal/12571
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