MEETING WITH DEPARTMENTAL COMMITTEE ON LABOUR AND SOCIAL WELFARE ON 15 TH MARCH 2011

1. MEETING WITH DEPARTMENTAL COMMITTEE ON LABOUR AND SOCIAL WELFARE ON 15TH MARCH 2011 A PRESENTATION ON THE STATUS OF WOMEN ENTERPRISE FUND (WEF) BY S.T. WAINAINA CHIEF EXECITIVE/DIRECTOR Empower a Woman: Empower a Family: Empower a Nation

2. WOMEN ENTERPRISE FUND – LEGAL FRAMEWORK • WEF was gazetted in August 2007, legal notice 147, under Government Financial Management Act (Women Enterprise Fund) Regulations • It is a flagship project under the social pillar in Vision 2030 • Promotes the 3rd millennium development goal on gender equality and women empowerment 1 Empower a Woman: Empower a Family: Empower a Nation

3. KEY MANDATES • Provision of subsidized credit for enterprise development • Capacity building of women beneficiaries • Support and facilitate local and international marketing of goods and services produced by women entrepreneurs • Support and facilitate development of infrastructure beneficial to women entrepreneurs • Support and facilitate linkages between women owned enterprises and big companies 2 Empower a Woman: Empower a Family: Empower a Nation

4. VISION & MISSION • Vision ….. To socially and economically empower Kenyan women entrepreneurs for economic development • Mission…. To mobilize resources and offer access to affordable credit and business support services to women entrepreneurs. 3 Empower a Woman: Empower a Family: Empower a Nation

5. STRUCTURE • Advisory Board of 11 members, six (6) from private sector and five (5) from public sector • Secretariat headed by Chief Executive / Director • Constituency Women Enterprise Fund Loans Committees • Ministry of Gender, Children & Social Development Field Officers • Volunteers – 55 in number from no. 55 constituencies 4 Empower a Woman: Empower a Family: Empower a Nation

6. TARGET CUSTOMERS • Economically active Kenyan women entrepreneurs above 18 years of age. No discrimination on either disability or HIV status • All types of legal enterprises in all economic sectors, regardless of size - micro, small & medium enterprises (MSMEs) • Both start-ups and growth oriented enterprises are funded 5 Empower a Woman: Empower a Family: Empower a Nation

7. FUNDING TO-DATE Relies on GOK funding through annual budgetary allocations 6 Empower a Woman: Empower a Family: Empower a Nation

8. LENDING CHANNELS I- C-WES / Ministry Channel II- Financial Intermediaries Channel • 1% int. Women Enterprise Fund(WEF) • 0% int., • 5% one-off admin. fee (I) (II) • 8% int. Financial Intermediaries(FIs) Women Entrepreneurs (WEs) 7 Empower a Woman: Empower a Family: Empower a Nation

9. LOAN STATUS • Total disbursed as at 28th February 2011 - Kshs.1,340,609,330 • Allocations to no. 210 constituencies - Kshs. 465,000,000 • Allocations to no. 74 FIs - Kshs. 1,540,000,000 • Disbursements under C-WES -Kshs.308,609,330 to 6,466 groups • Amount released to no.45 FIs- Kshs.1,032,000,000 • Amount awaiting Board’s approval is Ksh.101,652,200 to 1,901groups • Repayment rate:- • Under CWES - 70% • Under FIs - 100% • Total income earned since inception – 83.2 million. This is as a result of:- • Interest charged on investments (fixed deposits) • Advances to FIs at interest rate of 1% • Administrative fees charged on CWES loans at the rate of 5% 8 Empower a Woman: Empower a Family: Empower a Nation

10. TRAINING • No.49,382 women entrepreneurs trained (from both CWES & FI channels) on:- • Entrepreneurship • Basic business management • Book-keeping • ASCA tools (Accumulated savings and credit associations) • *Actualizes mandate on capacity building 9 Empower a Woman: Empower a Family: Empower a Nation

11. MARKETING • In support and facilitation of local and international marketing of goods and services produced by women entrepreneurs, the fund has done the following: • Website – Up & running • Instrumental in marketing products of women beneficiaries through hosting their banners or linking with their websites. • Participation in local ASK shows and exhibitions • Awareness creation Has used the following media:- • Electronic • Local print 10 Empower a Woman: Empower a Family: Empower a Nation

12. Partnership withExport Promotion Council(EPC) – In the final stages • Instrumental in the implementation of the following mandates; • Supporting and facilitating local and international marketing of goods and services produced by women entrepreneurs, • Facilitation of linkages between women owned enterprises and big companies • Facilitation of development of infrastructure beneficial to women entrepreneurs such as markets and business incubators. 11 Empower a Woman: Empower a Family: Empower a Nation

13. OPERATIONAL CHALLENGES • Current legal status as a SAGA • Low financial literacy amongst women • Low loan repayments due to:- • Negative perceptions, e.g. loan funds being grants • Myths/Fear of borrowing • Insecurity in some parts of the country • Weather related issues • Limited access to financial institutions in some counties * 12 Empower a Woman: Empower a Family: Empower a Nation

14. ACHIEVEMENTS • No. 228,988 women beneficiaries i.e. no. 193,988 under CWES & no.35,000 under MFIs • No. 49,382 women trained in entrepreneurship • Formulation of a strategic plan 2009 / 2012 • Draft WEF Bill 2010 • Increase in number of MFI partners from 12 at inception to 74, hence enhanced disbursements of the loans 13

15. FUTURE PLANS • Enactment of WEF Bill to transform the Fund to a parastatal • Recruitment and capacity building of officers at county level • Continuous awareness creation • Promotion and support the formation of rural based women SACCOs 14

16. THE END! THANK YOU 14 Empower a Woman: Empower a Family: Empower a Nation