Standing in the gap for women entrepreneurs

Disenchanted by the prospects of landing a well-paying job after completing her studies, Gladys Nyongesa, 34, walked into an agro vet store in Bungoma and sought unskilled employment.

She remained in employment, just long enough to gather experience and capital to start a similar venture of her own. When she finally did in 2014, her new exploits presented a litany of challenges for the new entrepreneur.

“My seed capital was just Sh20,000, which I bought wares, and with some other saved money, I paid rent. I faced challenges such as inadequate capital to run the business, tough competition, and lack of knowledge in the supply chain,” says Nyongesa.

To hand her business a lifeline, she partnered with a known non-governmental organization (NGO) to sell their agro-products and earn interest in return. Soon, the agreement went sour after Nyongesa discovered she was being short-changed.

Financial boost

“It was at that point that I decided to do things on my own. I applied for some loans, but banks were too strict; they wanted me to give them a title deed or a logbook neither of which I had. But when I approached Equity Bank in 2018, they were able to give me money without many requirements,” Nyongesa reveals.

Historical account shows that women, unlike their male counterparts, have not had a long relationship with money. When women entered the workforce, they started at a low level, facing unrelenting indifference and contempt. But as the world order changed, their circumstances improved tremendously and it continues to do so.

More barriers are being trampled, allowing women a refreshing freedom to do among other things open bank accounts, subsequently securing financial independence. In these milestone achievements, Equity Bank stands out as one of the lenders who have recognised a crucial need to create financial solutions for women in a bid to support them as they scale their financial ambitions.

The bank’s goal remains to empower women whether housewives, agriculture enthusiasts, or entrepreneurs by creating opportunities for women to dream, start and grow.

Among their products tailored for women include Fanikisha — translated into accomplish in English. It is a bundled product that targets women from all cadres of life to access financial solutions. Under it, women organised in groups can leverage their chama savings to access loans as low as Sh1,000.

At the same time, this facility can be accessed for large commercial investments such as land purchases, or other assets such as motor vehicles by either individuals or chamas. Through Fanikisha, more than 8.3 million women have been impacted, with Sh339.2 billion having been disbursed so far.

Insuperable demands

Diporah Naserian ran a food business for a few years before abandoning the trade for its paltry profits and skyrocketing overheads. “I had to find another business because this one was not working; the money coming in was too little. So in 2019, I started selling mitumba (second hand clothes) with a loan I got from Equity Bank,” says Naserian.

While trying to access money to set up the mitumba business, all the available lenders had insurmountable loan security demands and were dismissive of her trade.

“The terms of servicing the loan are favourable with Equity, and when Covid-19 pandemic struck, I negotiated the repayment plans. Through the loans, I have increased my stock and attracted more customers,” she adds.

Naserian has taken out a total of three loans, which she has used to build a home and unlock business opportunities. She is currently servicing a Sh600,000 loan, which she says has attracted a “comfortable interest rate”.

For its stellar performance in women banking, Equity Group was recognised as the best bank in financing women entrepreneurs by International Financial Corporation (IFC) and the Global SME Award.

In their remarks, the judges observed that women who banked with Equity had higher-than-average business growth. They were also able to service their loans diligently resulting in about half average Non-Performing Loans (NPL).

“The best thing about Equity is that they listen to you. If you have a challenge and you approach them they will sit with you and listen to you,” Naserian intimates.

Stimulating job creation

Equity Group Foundation in partnership with Mastercard Foundation and Equity Group is currently implementing the Young Africa Works Kenya (YAW-K) programme. The programme is set to generate 810,000 jobs through micro, small and medium enterprises (MSMEs) across all sectors of the economy over five years.

The YAW-K programme was established with the primary objective of stimulating job creation and economic growth by providing youth and women MSME entrepreneurs with financial advice, mentorship, entrepreneurship training, and access to financial and business development services.

“Sometimes as an entrepreneur, you do not know everything and Equity comes in and gives us advice on such issues as record keep, how to talk to clients and give them good services,” says Naserian.

The programme has reached and supported 500,000 MSMEs through capacity building and extended loans valued at Sh200 billion. It is these strides that Equity has made over its years of existence that have earned the lender the global acclaim from well-respected institutions.

The IFC and the Global SME Finance Awards 2022 feted the bank as the platinum winner for the Best Financier for Women Entrepreneurs, which speaks into what the brand and its leadership values. 

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