Policy Brief Submitted to Implementing Banks of the Credit Guarantee Scheme

Abstract

This policy brief is based on research work: ‘Assessing what works for Women’s Economic Empowerment (WEE) in the implementation of Kenya’s Credit Guarantee Scheme’, which evaluated the implementation of the Credit Guarantee Scheme (CGS). The research was undertaken by the University of Nairobi Women’s Economic Empowerment (UON WEE) Hub in collaboration with the Kenya National Bureau of Statistics and the National Treasury. The study aimed at monitoring the extent to which the implementation of the CGS has been gender-inclusive. Both quantitative and qualitative data were collected from Micro Small and Medium Enterprises (MSMEs) in Kajiado, Kirinyaga, Kitui, Nairobi, and, Nakuru counties.

The findings from this study are expected to serve as input towards improved reporting and dialogue on women’s economic empowerment and support evidence-based policymaking on the implementation of Kenya’s CGS facility. The study finds that the CGS currently targets formal enterprises; more male-owned than female-owned enterprises surveyed had applied for credit; generally, male-owned enterprises are likely to access higher levels of credit than female-owned enterprises; and; female-owned formal enterprises are likely to access high credits levels than female-owned informal enterprises.

A key recommendation to the Implementing Banks of the Credit Guarantee Scheme is therefore to provide more credit facilities that allow more women-owned informal enterprises to access higher levels of credit from formal lenders.

The UON WEE Hub Management under the Leadership of Prof. Wanjiku Kabira (the hub Leader) and Dr. Mary Mbithi (Director of Research) is pleased to share the key findings of this study with you. The research was undertaken by: Agnes Meroka-Mutua, Dalmas Ochieng’ Omia, Sila Muthoka, and, Deborah Muricho. The UON WEE Hub work is financially supported by the Bill & Melinda Gates Foundation.