Women’s Fund facing collapse

By Ally Jamah

Kenyan women celebrate the International Women’s Day today amid reports of near collapse of the multi-million Women Enterprise Fund.

The fund CEO Wainaina wa Njeri says a large number of the 182,000 beneficiaries are not paying back their loans, which they consider free Government money.

"Of the Sh265 million we have advanced through the constituencies so far, about Sh30 million has not been repaid and that figure is rising," he told The Standard on telephone "This poses a huge risk on the sustainability of the fund."

He blamed a section of politicians for sending wrong signals to beneficiaries that the money was a freebie or a grant.

He explained that some of those awarded loans took advantage of less bureaucratic and waiver securities to default on payments.

Cheap loans

The historic fund was established barely two years ago to empower millions of economically disempowered women, through cheap and easily accessible loans.

The money is channelled through constituencies and financial intermediaries such as banks.

"We are operating as a revolving fund and if the loans are not repaid as required then there is no way the fund can survive," he warned.

Wainaina pointed an accusing finger at politicians for the fund’s woes, blaming them for misinforming women about the loans.

"Some MPs are telling their people that the loans from the women’s funds are free Government money and they shouldn’t worry much about repayments," lamented the CEO.

Through the fund, each constituency is allocated Sh2 million and women can borrow between Sh1,000 to Sh500,000. The loans should be repaid within one year.

According to ranking of loan defaulters prepared by the Ministry of Gender, William Ruto’s Eldoret North constituency and Danson Mungatana’s Garsen constituency top the list of defaulters.