From the trusted mama mboga to the skincare entrepreneur who keeps you glowing, women-owned businesses make up a vital part of the SME sector and the economy in Kenya. Research indicates that women-owned SMEs contribute roughly 32% of the country’s GDP, reflecting their substantial economic impact. However, they face challenges in accessing capital hence the reason for the Tuinuke loan by the Women Enterprise Fund.
This financing gap has led to the development of initiatives such as the Women Enterprise Fund that give women access to loans and other services they need to grow their businesses.
What is the Women Enterprise Fund?
Women Enterprise Fund (WEF) is a government agency under the State Department for Gender and Affirmative Action that provides accessible and affordable loans to women entrepreneurs to start or grow their businesses. It was established in 2007 to align with Kenya’s Vision 2030 goals. So far, the agency has disbursed over 150 million dollars in loans and reported a repayment rate of 97%. They have also trained over 2 million women in entrepreneurship and financial literacy. Some of the key objectives include:
- Growing the fund to Ksh 10 billion through crowdfunding and cost reduction
- Providing entrepreneurial, financial and digital training to more women
- Registering 5 million women entrepreneurs in the fund
- Enhancing WEF’s technology infrastructure and governance for better service delivery
One of the key services that the Women Enterprise Fund provides is the Tuinuke Group Loan. This loan targets women’s self-help groups that want to start or expand their businesses. It is part of the Constituency Women Enterprise Scheme (CWES) which is in charge of implementing the fund.
Tuinuke loan is interest-free but attracts an administration fee of 6% which is deducted upfront. The loan amount that can be issued ranges from Ksh 100,000 to Ksh 750,000 and uses a graduated cycle system to disburse the funds. When a group successfully repays their loan and shows capability, they advance to the next cycle. The cycles are as follows:
- 1st Cycle – Ksh 100,000 (6 months)
- 2nd Cycle – Ksh 200,000 (9 months)
- 3rd Cycle – Ksh 350,000 (12 months)
- 4th Cycle – Ksh 500,000 (15 months)
- 5th Cycle – Ksh 750,000 (18 months)
If you’re interested in applying for the Women Enterprise Fund/ Tuinuke Loan, here’s how to do it.
Requirements for the Tuinuke loan
To be eligible for the Tuinuke loan, you must meet the following requirements.
- Group members must all be Kenyan women over 18 years old
- The group must have 20-30 members and must be registered with the Department of Social Services for at least 3 months
- The group must have a leadership structure ie chairperson, treasurer and secretary
- Members must be trained on Financial Literacy Skills by WEF before the loan application
- The group must have a bank account. SACCO, Posta and Micro-finance accounts do not qualify
- The group must provide a list of group members with their ID and telephone number. Members must sign against their name
- Members must belong to one group at a time
- The group must provide signed minutes of the meeting resolving to borrow from the Women Enterprise Fund
Application process for the loan
- Form or join a women’s group with at least 10 members
- Register the group with the Department of Social Services
- Open a group bank account if you don’t have one
- Pay the required training fee (Ksh 100 per member) towed and undergo training
- Once you have complied with all the requirements, you can start the application process
- Dial *254# on a Safaricom line to access the Financial Inclusion Fund service. Alternatively, use the M-Pesa app and go to Grow to access the Financial Inclusion Mini-App
- Select the Women Fund option and follow the prompt to register the group’s officials and members
- Members will receive an SMS notification to accept or decline the invitation to be added to the group
- Once the group is complete, you can access the loan option and submit your application. Two officials and three group members must approve the request through the system
- WEF will get your application to verify if you meet the requirements. This may take about 15 days
- If approved, the funds will be deposited in the group’s bank account
- WEF offers additional support such as mentorship, networking and marketing. Make sure you stay in touch with your local WEF office to get these opportunities
Note: Individual members are vetted on their credit scores to determine the group’s loan limit. Members must not have an outstanding Hustler Fund loan. All members are jointly liable in case the group defaults on payment.