Role Of Development Finance Institutions on Women Empowerment in Nairobi County, Kenya

Abstract

For inclusive economic growth and poverty reduction, more women must have access to and utilize high-quality financial products and services. This study sought to examine the impact of development finance institutions (DFIs) on women's empowerment in Nairobi County, Kenya. The study intended to assist Kenyan development banks in recognizing their duties in advancing women's equality. In particular, the study assessed the impact of investment capital, financial education, savings, and business support services provided by development finance institutions on women's empowerment in Nairobi County. The study was anchored on financial constraint theory, entrepreneurial feminist theory, and social capital theory. A descriptive survey design with a causal effect was adopted. The target population consists of 326 registered women-owned businesses that have a client or investment partnership relationship with Kenya's seven DFIs. Data was collected from 180 respondents using structured questionnaires. A multi-stage sampling procedure consisting of stratified sampling followed by convenience sampling was used. The overall validity of the study's findings, reliability, and validity tests were conducted to ensure the quality and validity of the data collected. The study findings suggest that there are strong correlational relationships between investment capital, financial education, savings, business support services, and women's empowerment. Importantly, empirical results show that investment capital and savings have a significant positive impact on women's empowerment in Nairobi County, Kenya. The study recommends that DFIs should continue and potentially expand their efforts to provide investment capital to women-owned enterprises. The study also recommends that DFIs should consider refining and expanding incentives within their goal-oriented savings programs. By implementing these recommendations, DFIs can further strengthen their contributions to investment capital and savings services for women entrepreneurs, ultimately enhancing women's empowerment in Nairobi County.