An investigation into factors affecting accessibility of Credit by women entrepreneurs in Kenya (a case study of Kibera Toi market in Nairobi)

Abstract

This study was meant to identify factors affecting accessibility of credit by women through financial institutions in Kenya. Improving availability of credit facilities to women is one of the incentives that have been proposed for stimulating growth and realization of potential contribution to the economy. Despite this emphasis the effects of existing institutional lending terms and conditions on access to credit facilities have not been addressed. Although formal credit institutions have proved relatively successful in meeting the credit of women in some countries their limited resources restrict the extent to which they can effectively and sustainably satisfy the credit needs of these women. The government recognizes that economic growth alone doesn't lead to sustainable development and elimination of poverty. Such growth must be accompanied by good governance, active participation of the population in socio-economic and political life and equitable distribution of resources. Development is a process that should lead to the betterment of people's lives by not only providing basic needs but also providing opportunities to choose a fuller and more valued existence. The government has identified women and has channeled finances to financial Institution's for on lending to these women in order to reach their development goals. This study sought to examine accessibility of this credit and tried to critically examine factors affecting accessibility. The research was carried out specifically in Kibera Toi Market, which is located in Nairobi. Primary data was collected by administering questionnaires which consisted of open and closed ended questions. The research adopted both explanatory and descriptive research design. The sample from this study was drawn by use of stratified random sampling. The population of this study was the women traders ofToi market. Data was analyzed using quantitative and qualitative analysis techniques with the aid of SPSS.