Women‑owned enterprises continue to face significant barriers in accessing business financing despite their expanding role in Kenya’s economy, new data shows.
Figures released by Metropol Credit Reference Bureau (CRB) reveal that female‑led businesses account for just 27 per cent of outstanding MSME credit value, compared to 73 per cent for male‑owned firms. This means that for every Sh1,000 advanced to male‑run enterprises, women entrepreneurs receive only about Sh361, underscoring a persistent gender gap in access to credit.
The disparity is not a reflection of women’s business performance but rather a consequence of lending models that remain heavily dependent on traditional collateral requirements.
Metropol CRB Chief Executive Officer Gideon Kipyakwai
“Across Kenya, women are running successful businesses and creating jobs. The challenge is that many do not have access to the traditional forms of collateral that lenders often require,” Kipyakwai noted.
He explained that many women‑owned enterprises operate profitably but struggle to secure loans because ownership of land, buildings and other assets commonly accepted as security remains uneven.
To address the challenge, Metropol is pushing for wider adoption of customer‑centric lending scorecards that assess borrowers using a broader range of data, including repayment history, credit records and business performance, rather than relying primarily on collateral. “Customer‑centric lending scorecards can help lenders build a more complete view of a customer’s creditworthiness by incorporating credit history, repayment behaviour and other relevant customer information alongside traditional assessment methods,” Kipyakwai said.
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He added that expanding the criteria used to evaluate borrowers could unlock financing for thousands of creditworthy entrepreneurs currently overlooked by conventional lending models.
Participants at a two‑day workshop in Embu County, themed “Bridging the Gap: Use of Customer‑Centric Lending Scorecards,” observed that many women‑owned and informal businesses remain underserved despite demonstrating strong growth potential. The forum brought together SACCOs, fintechs, digital lenders and regulators from Central, Lower Eastern, and Upper Eastern Kenya.
Delegates argued that heavy reliance on collateral‑based lending continues to exclude many entrepreneurs from formal credit markets even when they have strong repayment records and viable businesses.
Kipyakwai emphasized that credit bureaus have evolved beyond their traditional role of flagging loan defaulters and are increasingly helping lenders make more informed decisions by providing a fuller picture of customer creditworthiness. “At Metropol, we see our role as enabling better lending decisions by helping lenders use comprehensive credit information to identify opportunities, manage risk and expand access to finance,” he said.
The workshop forms part of broader efforts by industry stakeholders to promote data‑driven lending practices to widen access to credit while maintaining prudent risk-management standards.
By Masaki Enock
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