Abstract:
The importance of the micro and small-scale enterprise (MSE) sector is particularly apparent in terms of its ability to provide employment for those of working age. In Kenya, the MSE sector is the biggest employer outside agriculture. According to computations from Economic surveys, for example, the MSEs’ share of total non-agricultural employment in 1999 was 68.2 per cent up from 48.9 percent in 1993 (Ronge et al.,
2002). In 2008, 79.8% of all jobs were in the informal sector with 92.7% of all new jobs created being in the informal sector (Waithaka, 2009). This phenomenal growth in the MSE sector has increased policy focus on the development of this sector as an engine of economic growth, employment creation and poverty reduction. The Human Poverty Index for Kenya is disturbing. In 1997 it stood at 26.1 percent, by 2001 it had risen to
34.5 percent (Mudavadi, 2002) and on average 80% of Kenyans are predominantly poor with at least 50% living on less than a dollar a day. In recent a poverty assessment report for KisumuDistrict, it was established that more than half (53%) of the population was poor. The welfare monitoring surveys for 1994 and 1997 also indicated that poverty levels have been increasing over time (GOK, 2002-2008). Poverty has been associated
essentially to lack of access to finance (IFAD, 2003). Individuals with no access to formal financial services cannot contribute positively to private sector growth. They have difficulty surviving economic setbacks, building savings, and ensuring the well-being of their children. The Government of Kenya since 2002 has embarked on increasing access to financial support to enable both the youth and women gain access to funds
to increase women’s participation in business activities. The major findings are that most women are not aware that the Women Enterprise Fund given as loans is available and secondly the lack of formal training of the beneficiaries of the fund before the disbursement of the loans.
