Report: Women are 'undervalued' in business and labour markets

Women in Kenya continue to face significant barriers in business and economic participation despite progress in gender equality.

This disparity affects their ability to participate in the labour market, access financial resources, and engage in high-value business ventures.

“Women tend to dominate ‘softer’ business sectors like refreshments and flower sales, while men continue to dominate large-scale, high-investment industries,” notes Sakwa Masai, private sector engagement advisor at non-profit organisation Oxfam. The imbalance in financial access and business opportunities remains a pressing issue, requiring intervention from both the public and private sectors.

Access to financial services is a key factor in business success, yet women in Kenya face significant hurdles in securing loans and capital.

According to Oxfam, while 75.4 per cent of women had bank accounts in 2021, their representation in Parliament was only 23 per cent. In contrast, 83.2 per cent of men had bank accounts.

“The disparity in financial access translates into limited business opportunities for women. For every four men who successfully secure a loan, only one woman does,” said Masai during the multi-sectoral conference on advancing gender mainstreaming in Nairobi yesterday.

This financial exclusion makes it difficult for women to expand their businesses, invest in new ventures, or compete in high-value industries. Additionally, wage disparities persist in various sectors. Women in Kenya earn 13.5 per cent less than men in the trade sector and 29.3 per cent less in the accommodation sector.

The combination of wage gaps and financial exclusion reinforces economic disadvantages for women, preventing them from scaling their businesses or pursuing entrepreneurial opportunities. A major factor limiting women’s economic participation is the burden of unpaid care work. Oxfam estimates the global economic value of unpaid labour at approximately $11 trillion (Sh1,419 trillion) per year.

Keep Reading

In Kenya, women’s disproportionate involvement in caregiving and domestic tasks limits their ability to engage in paid employment and entrepreneurial activities.

The 2023 Kenya National Bureau of Statistics Time Use Survey Report highlights that women spend nearly five times more hours on unpaid domestic and care work than men.

Unpaid care work includes childcare, elder care, household chores, and other responsibilities that are often undervalued and taken for granted. For instance, many women must leave work to breastfeed, take care of children, or handle household duties, impacting their productivity and career growth.

The lack of supportive workplace policies exacerbates this issue. Inadequate breastfeeding rooms, the absence of childcare facilities, and rigid work schedules make it difficult for women to balance work and family responsibilities.

Addressing these challenges requires structural changes, such as the provision of employer-supported childcare services, flexible work arrangements, and gender-sensitive workplace policies. Beyond financial barriers, women also struggle with limited market access and insufficient business skills. Many lack training in marketing, sales, and production, making it difficult for them to scale their enterprises.

Moreover, businesses dominated by women often have lower profit margins compared to male-led ventures. While men secure government procurement contracts and large-scale investments, women remain concentrated in low-revenue sectors.

Without deliberate efforts to integrate women into more profitable industries, the gender gap in business success will persist.

Masai emphasises the need to improve financial literacy and business training for women entrepreneurs. By equipping women with essential skills, they can better navigate market dynamics, access funding opportunities, and build competitive enterprises.

Efforts to bridge the gender gap in economic participation require collaboration between the government and the private sector. In recent years, various initiatives have been introduced to promote women’s financial inclusion and business success.

For instance, some banks have developed women-focused financial products with lower interest rates and more flexible repayment terms. Companies such as Safaricom have also shortened payment periods for female suppliers, improving cash flow and financial stability for female-led businesses.

Additionally, the Kenyan government has made strides in supporting gender-sensitive policies. The Ministry of Gender has been working on digitising access to financial services, ensuring women entrepreneurs can leverage technology to grow their businesses.

Childcare policy

Furthermore, discussions are ongoing regarding the implementation of a national childcare policy, which would help reduce the burden of unpaid care work and enable more women to participate in the workforce.

“The Breastfeeding Mothers Bill, currently in its second reading in the National Assembly, aims to mandate breastfeeding-friendly facilities in workplaces, further supporting women’s professional and entrepreneurial aspirations,” said Miriam Mueni, assistant director of the gender State Department for gender and Affirmative Action.

Unpaid care work is not just a social issue—it has significant economic implications. Globally, unpaid domestic labour contributes to 10 per cent of the global GDP and is the fifth-largest sector in terms of economic value. Yet, it remains largely invisible in national economic planning.

Purity Jebor, gender justice and women’s rights programme officer at Oxfam, highlights the need for gender-responsive budgeting in Kenya. The national budget currently lacks sufficient allocations for infrastructure and services that would ease women’s care responsibilities, such as improved water access, healthcare, and childcare facilities.

In Nairobi, two market-based childcare facilities have been established, demonstrating a commitment to addressing this issue. However, more investment is needed to ensure widespread access to care facilities across the country.

“The domestic work sector also plays a crucial role in Kenya’s economy. Many Kenyan women work as domestic workers both locally and abroad, particularly in the Middle East. “However, domestic workers often face low wages, poor working conditions, and a lack of legal protections,” Jebor added.

In December 2023, an amendment was introduced to regulate minimum wages for domestic workers.