Lending reset hurts women’s credit- CS Cheptumo

During an open session before the Senate, Cabinet Secretary for Gender Hanna Cheptumo admitted that the government’s shift back to a manual lending system for the Women Enterprise Fund has unintentionally wiped out years of credit history for numerous established women’s groups.

The decision to discontinue the digital platform, operational since 2020, aimed to improve access for women in rural and marginalised communities.

However, this change has resulted in significant challenges for thousands of women who had built strong borrowing records under the former system.

"Since the switch back to the manual lending system in December 2024, the Fund has recognised the legitimate concerns raised by established women’s groups about losing credit histories and scores accumulated over many years, especially those from before the digital era," Cheptumo told senators on Wednesday, May 21, 2025.

"We acknowledge that many groups have invested years in building trust and financial discipline through digital repayments and monitoring. Their worry about being regarded as first-time borrowers under the manual process is justified, and we are actively working to find solutions."

Senators pressed Cheptumo on the reasoning behind the policy change, with some accusing the ministry of poor planning and insufficient stakeholder consultation.

Senator Agnes Kavindu from Machakos questioned sharply, "Why was the system altered without first securing the data? These women are more than just numbers—they are the foundation of community enterprises."

Cheptumo acknowledged technical shortcomings in the transition but stressed that the move was made with good intentions to address digital exclusion.

"We did not foresee the extent of the data loss. While digitization offers advantages, it also excluded many women, especially those in remote areas lacking internet access or smartphones. The manual system was introduced to bridge this gap," she explained.

She reassured the Senate that the ministry, alongside the Treasury and ICT agencies, is developing a hybrid model combining both manual and digital systems to preserve credit histories.

"We are working on integrating manual records with existing digital data so that no woman loses her financial identity,” Cheptumo said.

"We want to assure all women’s groups that their hard work has not been erased."

Senators welcomed the hybrid model proposal but demanded clear timelines and accountability measures.

"Hope is not a plan," said Senator Esther Okenyuri.

"We need to know when this hybrid system will be operational and how the ministry will ensure all records are fully restored. We cannot risk the livelihoods of our women."

Senator Godfrey Osotsi of Vihiga expressed concerns over transparency since the switch to manual processing.

"There have been more complaints about delays and favoritism. Digital systems are efficient partly because they are traceable. Are we losing that level of accountability?" he asked.

Cheptumo admitted that manual processes carry risks of inefficiency and corruption, adding, "That is exactly why the hybrid model is critical. We must balance inclusivity with accountability—we cannot sacrifice one for the other."

The Cabinet Secretary committed to submitting a detailed report to the Senate within 60 days outlining the restoration plan, the hybrid system framework, and a data revalidation process for women’s groups affected by data loss.

"Your records matter. Your journey matters. We are dedicated to rebuilding a system that respects your resilience and sacrifices," she assured.