Kenyans Urged To Invest In Women For Sustainable Development, Healthy Communities

Nairobi - There is often a prevailing notion that empowering women is merely about giving them a seat at the table or a voice to speak.

But true empowerment goes far beyond that—it is about providing women with the tools and opportunities to shape their own futures.

Financial empowerment is a driver that enables one to experience a better quality of life, thrive, and grow healthy communities.

Barriers faced by women in Kenya

A common barrier faced by women, especially in developing countries like Kenya, is the lack of access to capital to finance businesses. Whereas financial access between men and women has narrowed from 8.5% in 2016 to 4.2% in 2021, as per data from the Financial Sector Deepening Kenya (FSD Kenya), there is still a long way to go in closing the gender gap.

Without the financial means to start and grow businesses, women remain constrained in their ability to be economically empowered. This not only limits their ability to realise their potential but also reduces their agency to determine their quality of life.

The disparity in access also extends beyond Kenya to the rest of the continent. According to the International Monetary Fund (IMF), only 37% of women in Sub-Saharan Africa have access to bank accounts, compared to 48% of men - a gap that has widened over the past years.

Disparities in accessing financial systems

For a continent that represents the new frontier of economic growth and opportunity, it is interesting to note that half its population lacks access to the formal financial system. The returns on investment for the continent diminish as long as barriers persist for women to participate actively in and contribute to the economy.

When you invest in a woman, the returns are exponential. Research shows that women tend to reinvest up to 90% of their income back into their households - on health, education, home improvement and more. This builds human capital and unlocks generational progress.

Economic advantages of women’s involvement

It has been proven that when women have greater economic power, economies grow. According to McKinsey, advancing women’s equality could add USD 12 trillion to global GDP by 2025.

Investing in women is strategic and bears a return in terms of economic and social development. The results are felt in the short and long term. Women represent an underserved market segment, representing both a huge business opportunity and a means to drive economic growth.

Even more powerful is the ripple effect of women’s empowerment across generations. Research shows women role models inspire girls to achieve more in their own lives - educationally, economically and socially. This creates a snowball effect for gender equality and inclusive growth.

Role of digital financial services in women's empowerment

To realise this outcome, digital financial services are crucial and hold massive potential to expand women’s access and usage. Mobile money platforms like M-Pesa are reaching low-income women in remote rural areas, enabling them to access financial services for the first time.

The same is true for informal savings groups which build financial resilience at the community level. Fintech solutions are also emerging as an innovative means to drive inclusion.

Financial institutions are the primary channels through which capital flows in any economy. They hold the power to unlock women’s financial potential and can leverage this by tapping into their entrepreneurial drive.

As a leading financial institution, SBM Bank has set the pace in the women's empowerment agenda. We have empowered women through our USD 10 million risk-sharing agreement with the African Guarantee Fund (AGF) to increase financing of women-led SMEs.

This is just one pillar of our broader commitment to women’s empowerment which we are delivering through our Women Markets Program. The program continues providing linkages that educate, empower and protect women entrepreneurs from various sectors through advisory services, investment, insurance, and wealth management.

We are at a pivoting point in the women’s empowerment agenda, and this is due to the infinite resources, wealth, information, and technology that are available to be harnessed. These create an enabling environment for women to thrive financially.

Investing in women is a strategic move towards sustainable development. As Theodore Hook puts it, “The best way to predict the future is to invent it.” Indeed, the secure and prosperous future we all desire will be a reality if we create it today by enabling every woman to fully realise her full financial potential.

The above commentary belongs to Beth Muthui, Director of Consumer Banking at SBM Bank Kenya.

The views expressed here are the writer’s and do not in any way represent the position of TUKO.co.ke.