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

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 3 rd millennium development goal on gender equality and women empowerment Empower a Woman: Empower a Family: Empower a Nation 1

KEY MANDATES 1.Provision of subsidized credit for enterprise development 2.Capacity building of women beneficiaries 3.Support and facilitate local and international marketing of goods and services produced by women entrepreneurs 4.Support and facilitate development of infrastructure beneficial to women entrepreneurs 5.Support and facilitate linkages between women owned enterprises and big companies Empower a Woman: Empower a Family: Empower a Nation 2

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

4 STRUCTURE 1.Advisory Board of 11 members, six (6) from private sector and five (5) from public sector 2.Secretariat headed by Chief Executive / Director 3.Constituency Women Enterprise Fund Loans Committees 4.Ministry of Gender, Children & Social Development Field Officers 5.Volunteers – 55 in number from no. 55 constituencies

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 Empower a Woman: Empower a Family: Empower a Nation 5

FUNDING TO-DATE Relies on GOK funding through annual budgetary allocations PeriodBudgetary allocation(Ksh.) Actual receipts(ksh.) 2007/20081,000,000, / ,000,000215,000, / ,000,000440,000, / ,000,000330,000,000 Total2,255,000,0001,985,000,000 Empower a Woman: Empower a Family: Empower a Nation 6

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

LOAN STATUS Total disbursed as at 28 th February 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% Empower a Woman: Empower a Family: Empower a Nation 8

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

MARKETING In support and facilitation of local and international marketing of goods and services produced by women entrepreneurs, the fund has done the following: 1.Website – Up & running Instrumental in marketing products of women beneficiaries through hosting their banners or linking with their websites. 2.Participation in local ASK shows and exhibitions 3. Awareness creation Has used the following media:-  Electronic  Local print Empower a Woman: Empower a Family: Empower a Nation 10

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

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 * Empower a Woman: Empower a Family: Empower a Nation 12

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

FUTURE PLANS  Enactment of WEF Bill to transform theFund 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

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