In Kenya, women own 57.6% of MSMEs. Learn how financial access and digital tools are driving growth and community impact in 2024.

Women Entrepreneurs Lead Kenya’s MSME Growth: 57.6% Ownership in 2024

Kenya’s entrepreneurial landscape is evolving rapidly, and women are taking a central role in shaping its future. According to the 2024 FinAccess Household Survey, women own 57.6% of active Micro, Small, and Medium Enterprises (MSMEs), while men own 42.4%. Consequently, female entrepreneurs now significantly influence economic activity, innovation, and employment generation.

The Rise of Female-Led Businesses

Female entrepreneurship in Kenya has grown steadily over the past decade. Moreover, support from organizations such as the Cherie Blair Foundation for Women has enabled women to access mentorship, training, and critical business networks. “Women are breaking barriers and contributing significantly to Kenya’s GDP,” says Esther Mwangi, a Nairobi-based financial inclusion consultant. In addition, women-led businesses often focus on sectors such as retail, agriculture, and technology, demonstrating versatility and resilience in diverse markets.

Financial Inclusion: Progress and Remaining Challenges

The gender gap in financial access narrowed to just 1.6% in 2024. However, women-led MSMEs still receive only 36% of MSME loans, according to the CIS Kenya MSME Loan Performance Report. As a result, women entrepreneurs often turn to informal lending or digital financing solutions to fund their operations. Lower asset ownership remains a major hurdle for women attempting to secure traditional loans. “Access to finance is improving, but structural inequalities persist,” explains James Kariuki, an economist at FSD Kenya.

According to the latest Kenya Bankers Association (KBA) MSME Credit Survey Report the leading lender to Micro, Small and Medium Enterprises (MSMEs) in the first five months of 2025,was Equity Bank.

Digital Tools Unlock New Opportunities

Digital financial services have emerged as a key enabler for women-led MSMEs. In fact, over 50% of women-led businesses using digital loans have reported noticeable growth, according to a ResearchGate study. For example, Mary Wanjiku, founder of a Nairobi-based agritech startup, states: “Digital platforms have helped me reach customers beyond my local market. My revenue doubled in two years.” Additionally, mobile payments and online marketplaces are helping women expand their customer base and manage business operations more efficiently.

Policy and Institutional Support

Policymakers and international organizations are increasingly recognizing the importance of supporting female entrepreneurs. Similarly, the International Finance Corporation (IFC) partners with local institutions to provide women with financial literacy programs, digital tools, and mentorship opportunities. Furthermore, initiatives targeting women-led MSMEs aim to enhance digital adoption, improve access to formal credit, and foster sustainable business growth. These programs not only empower women but also strengthen the overall entrepreneurial ecosystem in Kenya.

Economic and Community Impact

Women-led MSMEs have far-reaching effects beyond business growth. In fact, profits are often reinvested in local communities, creating jobs, supporting education, and improving health services. Dr. Beatrice Njeri, an economic analyst, observes: “Supporting female entrepreneurs is not just about gender parity—it strengthens the economy and builds resilient communities.” Consequently, policies that support women-led MSMEs contribute to broader social and economic development, highlighting the intersection of gender equality and sustainable growth.

Challenges That Remain

Despite these gains, women entrepreneurs still face obstacles. For instance, cultural norms, limited access to collateral, and lower representation in high-revenue sectors constrain the potential of many female-led MSMEs. Nevertheless, the combination of digital innovation, mentorship, and policy interventions is gradually reducing these barriers. As a result, more women are able to scale their businesses, generate higher revenues, and compete effectively in domestic and international markets.

Conclusion

Kenya’s MSME sector is undergoing a transformative shift, with women leading the way. Moreover, digital platforms, financial support, and targeted policies are enabling female entrepreneurs to thrive, create jobs, and drive sustainable economic growth. Ultimately, the 2024 FinAccess Household Survey demonstrates that women are not merely participants—they are shaping the future of Kenya’s entrepreneurial landscape.

Explore further: FSD Kenya FinAccess 2024 Survey | Cherie Blair Foundation | CIS Kenya Report