Influence of Business Training and Financial Literacy on Loan Repayment in Devolved Fund Programmes among Women Entrepreneurs in Homabay County, Kenya
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Date
2025-05
Journal Title
Journal ISSN
Volume Title
Publisher
East African Nature & Science Organization
Abstract
Women entrepreneurs immensely contribute to economic development in
developing nations. In Kenya, women constitute over 70 percent of new
business startups. However, women entrepreneurs face several challenges,
including discrimination in access to finance
. To overcome these
challenges, the national government of Kenya came up with initiatives,
including the Women's Enterprise Fund and Uwezo Fund, among others.
Women access these funds through groups or as individuals. Despite these
interventions, women ent
repreneurs in Kenya, particularly in Homabay
County, still register a high level of loan defaults in these devolved funds.
This study examined the influence of business training and financial
literacy on loan repayment in devolved fund programmes among wom
en
entrepreneurs in Homabay County in Kenya using a structured
questionnaire with a sample of 397 women entrepreneurs. Based on
Cronbach's Alpha values above 0.7 for all the study variables, the data were
considered reliable. From the descriptive analysis
, the majority of the
women entrepreneurs participating in devolved funds in Homabay County
were financially literate, had a moderate level of business training, and
were aware of loan repayment benefits. There was a high positive
correlation between busin
ess training and loan repayment, as well as
between financial literacy and loan repayment. Regression results also
reported a significant positive influence of business training and financial
literacy on loan repayment. To improve loan repayment, the fund
managers
should collaborate with training institutions to develop and implement
tailor
-
made training programmes for women entrepreneurs to enhance their
business and financial skills
.
Description
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Keywords
Citation
Oluoch, S.& Okello, P. A. O.(2025). Influence of Business Training and Financial Literacy on Loan Repayment in Devolved Fund Programmes among Women Entrepreneurs in Homabay County, Kenya.East African Journal of Business and Economics, 8(1), 459-471. https://doi.org/10.37284/eajbe.8.1.3067.