Study reveals women are more disciplined and reliable borrowers
By Aloys Michael, August 25, 2025Kenya’s women entrepreneurs are proving to be some of the most disciplined and reliable borrowers in the banking sector, a new report shows.
Despite long-standing barriers to accessing finance, women are steadily winning the confidence of banks with repayment records and reinvestment habits that outperform their male counterparts.
The State of the Banking Industry Report 2025, released on Monday, August 25, 2025, by the Kenya Bankers Association (KBA) reveals that women not only repay their loans more consistently, but also channel their earnings back into families and communities.
“Studies show that women reinvest up to 90 per cent of their income in households and communities, compared to 40 per cent for men,” the report notes.
This makes women attractive clients for banks, which are increasingly shifting focus towards gender-inclusive lending. Kenya has already committed to the Women Entrepreneurs Finance Initiative (We-Fi) Code, unlocking about Ksh1.5 billion for female-led businesses.
Loan constraints
Women are also central to the Inuka SME Program, which trained over 14,000 entrepreneurs in 2024, many of them small traders and artisans. In addition, banks have pledged to double MSME credit disbursements from Ksh75 billion to Ksh150 billion annually over the next three years, with women expected to be among the biggest beneficiaries.
Still, access is not without challenges. The report shows that while 85 per cent of SME loan applications were approved in 2024, women often face hurdles such as a lack of collateral, limited financial records, and repayment capacity constraints.
Many operate informal or home-based businesses, making it harder to meet banks’ documentation requirements.Yet, their disciplined repayment traits continue to stand out.
“This trait not only makes them valuable clients for banks but also positions them as powerful drivers of social and economic development,” the report notes.
The report further says the shift towards gender-inclusive banking is deliberate, with banks determined to back more women-led enterprises.
“The concerted effort will ensure that the banking sector remains not only stable and profitable, but also transformative, inclusive, and aligned with Kenya’s long-term development aspiration,” the report reads.