Gender Disparities in Financial Inclusion: the Potential of Digital Loans in Empowering Female Health Entrepreneurs in Kenya
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In Sub-Saharan Africa, female entrepreneurs are well-represented in healthcare but struggle to access financial services. Digital financing technologies could help close this gap. This study assessed the readiness, perspectives and gender disparities in (digital) loan characteristics among Kenyan health Small and Medium Enterprises (SMEs). We interviewed 24 and surveyed 410 health SME owners and analyzed loan-history data from 850 health SMEs to compare traditional and digital loans, focusing on gender disparities. IDIs identified low trust in digital lenders, while survey results indicated a strong demand for loans, regardless of gender. SME owners willing to take risks, with monthly financial needs and positive perceptions of digital loans were more likely to take a digital loan. Loan-history data showed a gender difference in the initial traditional loan amount, with women-owned businesses receiving less, but this gap disappeared for digital loans. Over 50% of women-led businesses using digital loans experienced significant growth, suggesting increased digital revenues linked to these loans. This study highlights the financing gap among Kenyan health SMEs and the potential of digital loans to enhance financial inclusion. Low trust in digital lenders, especially among those without direct experience, calls for better information dissemination to build confidence in digital financial products.
