Effects Of Socio-economic Barriers and Women Financial Empowerment in Kenya - A Case of Businesswomen in Kajiado County, Kenya

Abstract

Social-economic issues have barred rural women to access finance there by limiting their ability to improve in financial empowerment. Such issues include collateral, financial information and financial inclusion. Majority of rural women are illiterate and lack the voice to procure loans for business development and growth. This is likely to affect their accessibility to finance for their financial empowerment. However, the studies reviewed failed to comprehensively address factors influencing access to finance by rural women from their empowerment as; collateral, financial information and financial inclusion jointly. This is to say that there is a knowledge gap that; collaterals, level of financial information and financial inclusions jointly affect access finance by rural women. This motivated the need to conduct the present study to fill the knowledge gap.This study used descriptive survey in soliciting information. The target population was the 98 women in business in Sultan Hamud Town of Kajiado County.Since the population was small and easily accessible, the study adopted a census design, where the entire target population participated as respondents. The studycollected data from primary sources using a structured questionnaire.The data was analysed using descriptive statistics and it was represented in tables and figures. Thereafter the study estimated a model using multiple regressions. Statistical Package for Social Science (SPSS) was used to assist in data analysis. The study established that business women in Kenya were not accessible to financial services for their financial empowerment and found out that requirements for collaterals, which are essential to access financial services, are major hindrances to access finance for Kenyan businesswomen for their empowerment, the study also concludes that access to financial information highly influences access to financial services of Kenyan businesswomen, and there is low level of women financial inclusions in Kenya, which is a major hindrance of business women from accessing the financial services. The study concludes that; collaterals, access to financial information, and women financial inclusion could significantly predict dependent variable; accessibility to financial services. The study recommends that financial lending institutions should simplify their ways of women accessing the financial facilities, by developing women friendly lending environment to enable these entrepreneurs to access finance for their empowerment. The study further recommends that non-governmental agencies, human rights bodies, Kenyan governments and stakeholdersshould provide relevant training and education in entrepreneurship, financial matters and on their rights for their empowerment to significantly influence the business success of women entrepreneurs in the country and equipped to manage business.