Microcredit is a prominent approach to supporting women’s entrepreneurship and has provided a means to tackle several economic and social hurdles women face which have hindered their economic progression over decades. Microfinance has been a well-known economic tool supporting women in Kenya since the 1990s, and has since spread across the nation with several established organizations, such as the Kenya Women Finance Trust (KWFT), Faulu Microfinance Bank and Uwezo Microfinance Bank. Although Microfinance Institutions (MFIs) have existed in the nation for decades, their success in empowering women is greatly contested.
Anita is a full stack engineer at Mkono within the Technology Team. She helps in the development of Chombo, Mkono’s internal software used to assist the Operations Team to automate and keep track of business processes. She shared with us her experience so far.
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This article is part of Mkono's new Mawazo thought leadership series. At Mkono, we want to continually share insights on the ever-changing landscape of microfinance, SME growth, economic development and more.
Microcredit Organizations and Microfinance Institutions (MFIs) have existed in Kenya since the 1990s as a means to provide financial support to Small and Medium Enterprises (SMEs). SMEs face several challenges in accessing loans from banks and other traditional financial institutions, often influencing their decision to work with MFIs instead. Entrepreneurs working with Mkono have listed a few of these challenges which have included the size and type of their enterprise, high interest rates charged by formal banks, greater risk associated with formal bank loans as well as the bureaucracy that exists in formal institutions, which leads to lengthy and tedious loan processes.