The fund was established through the promulgation of (women enterprise fund regulations) under section 25 & 32 of the government Financial Management ACT, 2005, Legal Notice no.147 dated 3rd August 2007.
The following questions and answers relating to the women enterprise fund cover all aspects of the fund.
Who are the target customers?
Kenyan women aged 18 years and above, who may be organized in registered groups or as individuals or companies owned by women.
Can men be members in women groups?
In a group set up, men can be included provided that 70 percent of, members are women who also hold all the leadership positions.
What are the sources of finance?
The fund receives 100 percent financial support from the government of Kenya.
Where can one go for the money?
Two places:
a) For individuals –from the nearest offices of selected financial intermediaries
b) For those organized in groups-from the offices of the district gender and social development officers (DG&SDOs) found at district head quarters
How can one access the funds?
There are two ways
a) For individuals- by applying for the loan from a preferred financial intermediary which then conducts their normal credit appraisal?
b) For groups- by feeling a standard loan application form under the constituency women enterprise scheme(C-WES). These forms are available for FREE from the offices of the DG&SDOS)
Is the money a loan or a grant (free donation)?
It is a subsidized loan that must be repaid to enable other to borrow
What is the interest rate on the fund accessed through the two intermediaries?
a) For financial intermediaries – the interest rate is 8 percent per year on a reducing balance.
b) Through C-WES – Zero (0 percent) interest rate and a one off administrative fee of 5 percent of the loan amount.
Are there hidden charges on these loans?
There are no hidden or additional charges except that some financial intermediaries may require the loan to be insured against death or permanent disability of the borrower at a minimal fee.
What is the maximum loan amount one can get and for how long?
a) From the financial intermediaries, up to KSh 500,000 for a maximum of 36 months. Amounts above half a million are recommended to the Funds Advisory Board for consideration
b) From C-WES channel- up to KSh 50,000 for a maximum of 12 months. The board is considering enhancing this amount in the next financial year(2009/2010)
What are the financial intermediaries and how are they selected?
Through a competitive and transparent open tendering process.
Currently they are Taifa Sacco, BIMAS, Cooperative Bank, Family Bank, Kenya Industrial Estate, Wakenya Pamoja, K-REP Development Agency, Jitegemea Credit Scheme, Mathira Sacco, Pamoja Women development Programme and small & Micro Enterprise Programme(SMEP). More partners will be recruited in the next financial year 2009/2010
What securities are accepted under the C-WES?
Simple security requirements that include: group guarantees, household items, business stock and quoted shares, etc.
Is there a grace period?
Yes, 3 months for money under the C-WES
When does the grace period start to run?
From the date the group receives the cheque from our field officers (DG&SDO) or when the money is directly credited to the account through the Electronic Funds Transfer
Where does one make or bank the C-WES loan repayments?
At any KCB branches country wide. Remember to write down the Group Names &
Account Number -1111394423, KCB Moi Avenue Branch, Nairobi. Other efficient modes of payment like M-PESA or ZAP are being explored.
If a constituency has lent its full allocation what happens?
As a revolving fund the repayment are used to lend to other groups in need.
What other services does the fund provide/plan to provide to serve their women clientele?
The fund supports capacity- building of the beneficiaries and their institutions. Other value adding services will be rolled out later like facilitation of marketing of products and services and linkages with large companies.
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