Introduction to the Women Enterprise Fund

The Women Enterprise Fund (WEF) is a semi-autonomous government agency established on August 3, 2007, under Legal Notice No. 147. It operates under the State Department for Gender and Affirmative Action and serves as a flagship project of Kenya Vision 2030, aiming to advance the Sustainable Development Goals of poverty eradication and gender equality. The fund's primary mandate is to provide accessible and affordable credit to women entrepreneurs to start or expand their businesses, thereby fostering wealth creation and employment. Since its inception, the WEF has disbursed over KSh 26.4 billion to more than two million women, according to a June 2023 report.

Loan Products and Eligibility

The WEF primarily offers group-based loans, known as the Tuinuke Loan, which targets registered self-help groups. To qualify, a group must be registered with the Department of Social Services for at least three months and consist of 10 to 30 members, all of whom must be women aged 18 or older. While men were previously allowed if women constituted 70% of the membership and held all leadership positions, recent changes with the move to digital lending require all members to be female. The fund also provides individual loans through financial intermediary partners.

Loan amounts for groups range from KSh 100,000 in the first cycle to KSh 750,000 in the fifth cycle, with repayment periods extending from 6 to 18 months. A significant feature of the Tuinuke loan was its zero-interest rate, with a 5% administrative fee. However, following a relaunch and digitization effort in 2023, a 6% annual interest rate was introduced. The fund also encourages a savings culture by requiring that 5% of the loan amount be deposited into the group's savings account.

Application and Disbursement Process

In a move to enhance efficiency and accessibility, the application process has been digitized. Women can now access the fund by dialing the USSD code *254#, the same platform used for the Hustler Fund. The group's chairperson initiates the registration of officials and members on the platform. Once a loan is approved, it is disbursed into a group wallet. The distribution of funds among members requires approval from two officials and three randomly selected group members to ensure transparency and collective responsibility. President William Ruto announced in March 2023 that this digital shift aims to reduce the loan processing time from 45 days to an instant disbursement.

Broader Support and Mandate

Beyond providing credit, the WEF has a five-fold mandate that includes capacity building, facilitating market linkages, supporting investment in business infrastructure, and promoting the marketing of products from women-owned enterprises locally and internationally. All groups must undergo mandatory financial literacy training conducted by WEF officers before loan application. This training is designed to equip entrepreneurs with the necessary skills for effective credit management and business growth. The fund actively supports women in attending trade fairs and exhibitions to connect with larger markets.

Impact and Success Stories

The WEF has been instrumental in empowering women economically across Kenya, particularly in rural areas. Beneficiaries have reported increased household income and the ability to pay for school fees. Success stories from the WEF website highlight diverse impacts, from small-scale farmers transforming into commercial weavers to groups purchasing assets like tents, chairs, and even a minibus for income generation. One notable example is Lucy Mbugua from Uasin Gishu County, who grew her modest porridge-selling business into a significant enterprise after her group received a KSh 100,000 loan in 2013, eventually securing financing up to KSh 750,000.

Challenges and the Path Forward

Despite its successes, the WEF faces several challenges. These include inadequate field personnel, delays in disbursement (which digitization aims to solve), and low loan amounts that may not meet actual business needs. At the borrower level, challenges include limited market access, lack of business knowledge, and diversion of funds to domestic needs. Political interference and bureaucracy have also been cited as obstacles. To address these issues, the government has committed to tripling the fund's resources from KSh 4.5 billion to KSh 13.5 billion. The WEF's Strategic Plan for 2023-2027 outlines key result areas focused on fund growth, expanding financial inclusion to five million women, enhancing capacity building, and improving market access for women entrepreneurs.