Through interviewing women borrowers, working in their businesses and homes along with analyzing my own experiences in several Kenyan communities served by microfinance, I became aware of how gender inequalities that women participants experience in their daily lives negatively impact their participation in microfinance. My research contributes to the understanding of such descriptions and experiences of women that are often left out of microcredit program assessments. Several of my thesis topics as an undergraduate are provided below.
Gender Inequalities Impact on Microfinance Participation
-How does the unequal distribution of labor in rural households impact the ability of women to pay back their loan, and attend trainings and meetings required by the microcredit program?
Women work extremely long hours due to their various responsibilities inside and outside the home. Daily activities that are common among the both urban and rural women include housework, such as cleaning and cooking, farming, children rearing, church and community based functions, and operating a business or more than one income generating activity. Most homestead responsibilities are on the shoulders of women. In the United States, researcher Arlie Hochschild called this phenomenon the “second shift” to allude to the fact that even though more American women than ever hold a paying job outside the home, women still perform the majority of non-paid household based work resulting in more working hours compared to men.[1]
As a result, the mobility of women is often limited due to their busy schedules and vast responsibilities that make it difficult for microcredit participants to tend to their obligations in the program. Common requirements of Kenyan microcredit programs include weekly meetings, weekly or monthly savings, weekly or monthly loan payment schedules and training.
-How does the lack of education of rural women impact their understanding and utilization of training modules, loan agreements, and their loans?
Compared to men, women have less access to educational opportunities including vocational training and formally schooling. Even though many of the women whom I interviewed are fortunate to learn their form of trade (business) from the female members of their family and community, most are illiterate and lack formal education or training. Such factors limit the ability of women to operate a well organized and functioning business, to understand written training materials and the complexity of loan contracts.
For example, the majority of Kenyan microfinance loan contracts are on average four pages that often include legal and technical jargon rather than plain language that may affect the ability of women to know their rights and hold the program accountable including grace periods, payment terms, collateral requirements and repossession processes.
-How does the lack of land ownership and ability to control the use of land among rural women shape their ability to repay their loans?
Less than one percent of Kenyan women possess a land title deed.[2] Such a gender inequality is a reality that affects many microcredit participants who operate their business in their home and on their homestead. Thus, the businesses of rural women are often vulnerable to the control of others, particularly male family members. Thus, their ability to utilize and repay a loan is not under their direct control.
Amy, a borrower whom I interviewed, operated a small restaurant on the side of her homestead for traveling workers, but several months after taking a loan to improve her operations a male relative who owned the land took over the business. Even though Amy had no capital in invest in a new business, she had no choice but to start raising chickens to continue to repay her loan.
Limits of Female Empowerment through Financial Services
Months of research in the Kenyan microfinance industry has lead me to argue that gender inequalities, even though impact the participation of women in microfinance and is an essential topic when addressing the empowerment of women, are rarely addressed by microfinance providers and lenders. Many microfinance programs claim to “empower” their clients by granting access to financial services to support a business and earn income.[3] Researcher and development practitioner Gerd Johnsson-Latham argues that “[p]overty strategies often disregard the fact that women as a group face non-economic barriers in terms of social constructs (laws, norms, attitudes) which limit their access to land, inheritance, education, employment, carriers mobility and personal freedom” (43).[4] Unfortunately as explained above, there are other barriers to “empowerment” that women face on a daily basis that microfinance does not consider.
Another form of female empowerment supported by the international development and donor community is education. One of the Millennium Development Goals aims to promote gender equality and empower women through eliminating gender disparity in all levels of education no later than 2015.[5] Even though access to education is extremely important factor in raising the life chances of females, an education provides no guarantee that women will end up with better off without equal access to the job market. Research has found that even as girls begin to attend school at the same rate as boys, females are still less likely to gain access to a well paying employment or decision making positions that affect policy or resource allocation.[6] [7]
I make the same argument regarding microfinance. Even if women gain access to microfinance services to start and support a business, she has many gender based barriers to overcome until she is “empowered” by access to financial services. Again Johnsson-Latham argues that “remedies,” one of which I would argue is microfinance, “…are designed to lift women closer to the level of men by reducing gaps in terms of education and income and so on” rather than challenge “male privilege” (42).[8]
A Look Ahead
As a poverty alleviating intervention, does microfinance have a role in mitigating the impact that gender inequalities have on their women participants? As gender inequalities can impact the repayment of loans and savings deposits of clients, I argue that microfinance providers should take interest. This question is important to contemplate as the success and sustainability of this poverty alleviating tool is directly impacted by socially constructed gender norms. I will continue the conversation in my next blog post through the discussing how microfinance programs can possibly reduce the negative impacts that gender inequalities have on the participation of women.
[1] Hochschild, Arlie R, and Anne Machung. The Second Shift. New York: Penguin Books, 2003.
[2] Ellis, Amanda. Gender and Economic Growth in Kenya: Unleashing the Power of Women. Washington, DC: World Bank, 2007.
[3] The mission of Kenyan Women Finance Trust is “to partner with women in their creation of wealth.” The mission of Faulu Kenya is “to listen and empower Kenyans by providing relevant financial solutions.” The mission of Opportunity Kenya is “to empower the economically active poor through financial and related services, which attract and retain a growing client base.” The mission of Jamii Bora is “to assist our members to get out of poverty and build a better life for their families.” [Such information can be found on the websites of each organization.]
[4] Ibid.
[5] United Nations. Millennium Development Goals. “Goal #3: Promote Gender Equality and Empower Women.” <http://www.un.org/millenniumgoals/gender.shtml>.
[6] Ibid.
[7] Johnsson-Latham, Gerd. “Power, Privilege, and Gender as Reflected in Poverty Analysis and Development Goals” in Chant, Sylvia H [editor]. The International Handbook of Gender and Poverty: Concepts, Research, Policy. Cheltenham, UK: Edward Elgar, 2010.
[8] Ibid.
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