Why Kibuku women are skeptical about accessing GROW funds

Women under the Tirinyi Vendors Association in Kibuku's Tirinyi Town Council have expressed concerns that they may struggle to access the Generating Growth Opportunities and Productivity for Women Enterprises (GROW) funds due to stringent requirements.

"The requirements, including collateral, business licenses, loan budgets, and guarantors, may seem simple, but rural women may fail to fulfil them," said Ketty Kayendeke, the association's chairperson. "We suggest the government review these conditions to make the program more accessible."

Many rural women were initially told that the program would provide loans without security, apart from a 10 per cent annual interest rate. However, they were later surprised to learn that they needed land titles to access the funds.

"This has made most businesswomen avoid the GROW fund because they cannot afford the requirements," Kayendeke explained.

The GROW project aims to address structural barriers hindering women-owned businesses, including financial inclusion and access to business development services. However, the government clarified that GROW funds are loans, not grants, requiring collateral like land titles, which many women lack.

"The biggest challenge is the collateral, especially land titles," Kayendeke noted. "Most women have no land title, so how can they access these funds?"

Ms Esther Naula, a fruit vendor from Kataka village, echoed similar sentiments. "The stringent requirements are intended to kick out majority of women from accessing these funds. There was no consideration for rural women."

Ms Jane Nambaluka, another rural woman, suggested that some conditions should be flexible to give rural women a chance to access the funds.

The GROW project, launched in 2023, has received a $217 million grant from the World Bank for its five-year duration. To be eligible, women must own at least 51 per cent of the enterprise, and loans range from Shs4 million to Shs200 million, repayable within two years with competitive interest rates.

Mr Moleka Augustine Majanga, a district councilor, expressed concerns that the GROW project may not achieve its intended targets due to the stringent conditions.

"Processing land titles is not simple, and rural women cannot afford to process them, automatically driving them out from accessing these loans."

Beneficiaries can access loans from six selected commercial banks: DFCU, Equity, Finance Trust, Centenary, Post Bank, and Stanbic Bank.