Women entrepreneurs in Kenya: Bridging the gender gap, boosting the economy

Abstract

Entrepreneurship is a key driver of economic and social development. In terms of gender equality, there remains a gender gap that needs to be fixed. According to the African Development Bank, Africa is the continent with the highest percentage of women entrepreneurs in the world. However, the rate of female entrepreneurs varies across countries, and it is not necessarily related to successful performance. By the example of Kenya and South Africa, this article identifies the main barriers that female entrepreneurs face and the measures to counter them.

Entrepreneurship is a key driver of economic and social development. In terms of gender equality, there remains a gender gap that needs to be fixed. According to OECD, women are frequently held back in entrepreneurship due to barriers related to difficulties accessing resources, smaller networks, and lower levels of entrepreneurship skills (OECD 26).[i] Bridging the gender gap in entrepreneurship is not only a core element of the fifth Sustainable Development Goal, but it is essential to promote gender equality and to boost social justice.[ii] Embracing gender equality in entrepreneurship further contributes to enrich the economic ecosystem and to enhance the role of women in business.[iii]

To improve women entrepreneurship, it is important that policymakers acquire a comprehensive understanding of what are the main barriers that women face when deciding to start their own business. Therefore, this article seeks to contribute to existing literature by highlighting the existing challenges that women entrepreneurs face in Kenya. After comparing the situation of female entrepreneurs of this Eastern African country with those in South Africa, this paper will take some lessons learned to be applied in the future and will propose some actionable insights to the Kenyan government.

Practical implications for women entrepreneurs in Kenya.

Getting involve in entrepreneurship means economic and social transformation for women. According to the World Bank, closing the gender gap in entrepreneurship and employment could increase global GDP by 20% (Valladares). In developing economies, the role of women is crucial to create new jobs, and to foster innovation and economic prosperity in the communities they live in. Besides, women-led businesses are more likely to employ women.[iv]

Female entrepreneurial landscape in Kenya

According to the African Development Bank, Africa is the continent with the highest percentage of women entrepreneurs in the world (ADB). However, the rate of female entrepreneurs varies across countries, and it is not necessarily related to successful performance.[v]

In the case of Kenya, only 5 percent of female owned businesses were formally registered in 2023.[vi] Formalization plays a substantial role for an enterprise to gain legal status, establish credibility and access to finance opportunities. The main reason for this lack of formalization is that business registration is an expensive and complicated process in Kenya, especially for women. Consequently, as a survey carried out by the KNBS revealed, Kenyan women lead the micro and informal businesses sphere (Were 11).[vii]  Other factors that contribute to this gender disparity are lack of basic awareness and literacy, and the often-extensive bureaucratic processes. Considering that most women carry the responsibility of family obligations, they struggle to devote enough time to these procedures. Historical gender inequalities of property ownership also play a crucial role by hindering access to funding opportunities which could ease the path for business establishment and formalisation.[viii]

The Kenyan government has sought to overcome these barriers by boosting initiatives to start or expand businesses through training, business opportunities and low-interest loans (Omosa). The Women Enterprise Fund and the Uwezo Fund are some of the entities which have disbursed billions of Ksh to improve business management and profits of enterprises led by women. However, these initiatives fail in reaching women in rural areas and they focus solely on entry-level business skills, leaving financial planning, scaling strategies and advanced digital applications behind. Besides, there is a gap of strong female professional networks for mentorship, which leaves Kenyan women without valuable insights, personal experience and expertise that could guide them in their business journey.[ix]

The gender gap in South African entrepreneurship

In South Africa, even though the entrepreneurial ecosystem has better institutional pillars, the rate of female entrepreneurs is lower compared to the one in Kenya.[x] According to the last Special Report of the Global Entrepreneurship Monitor of South Africa, women from this country tend to enrol in entrepreneurial activities at a later age (GEM 29).[xi] On the one hand, some research organizations in South Africa believe that after experiencing glass ceiling in their corporate jobs, women decide to start their own businesses with the hope of fleeing gender inequality. On the other hand, it could mean that women only get involved in entrepreneurial activities after raising their children.[xii] The Special Report of the Global Entrepreneurship Monitor also states that female entrepreneurs are exiting their businesses at a higher rate than they are starting them, which is a call for urgent measures to support women (GEM 4).[xiii]

What lessons learned can be taken to ease the path of Kenyan and South African entrepreneurs?

This article has highlighted that some of the barriers that women face when starting their own businesses are related to formalization and bureaucratic obstacles, lack of suitable training beyond basic literacy, and societal obligations. Some of the measures that could help to overcome these challenges are:

Investment in more financial opportunities

Investing in more financial opportunities not only bank funding, private investment and government funding programmes, but also microcredits, which can be used for start-ups and offer smaller loans to those segments of population that have difficulties to access other banking services. Better funding opportunities is a core element to ease business establishment and formalization.[xiv]

Digitalization

Digitalization brings a wide range of benefits for women entrepreneurs. Firstly, technologies enable women to continue with their business training thanks to the resources provided by education platforms such as Coursera. Secondly, professional social networking platforms offer the opportunity to enrol in communities, networks and forums where to exchange resources and experiences with other women. Thirdly, thanks to the rise of crowdfunding platforms such as GoFundMe and Kickstarter, women can access other financial methods by presenting their entrepreneurial projects.[xv]

Building women role models

Finally, building women role models is essential to promote an entrepreneurial culture among women. Achievements of other successful women empower and inspire others and encourage the new generations to start their own businesses.[xvi]

How can female entrepreneurs overcome challenges related to informality, access to finance, digital tools, or policy constraints?

To bridge the existing gap in technology and finance, it is essential for women to enrol in skill-building programs. In a world that is increasingly becoming more digital, equipping women with digital skills and literacy remains a priority.[xvii]  For instance, the International Trade Centre offers programs like SheTrades devoted to empowering women to navigate e-commerce platforms (International Trade Centre).[xviii] However, raising public awareness is the most important task. This can be achieved through mentoring programs between women and campaigns that demonstrate the history of success of female entrepreneurs.

Actionable insights for the government of Kenya

Considering the measures that have been presented above, there are three actionable insights that the government of Kenya could implement to bridge the gender gap in entrepreneurship. Firstly, reduce registration costs and bureaucracy for women-owned businesses. Secondly, scale gender-responsive financing through microcredits, public funds and private investment. Thirdly, invest in digital literacy, e-commerce training, and mentorship networks to connect female entrepreneurs, especially in rural areas, to markets, financing opportunities, and role models they can relate to.

Conclusion

To conclude, even though many steps have been taken forward already, there is still a long way to go to close the gender gap in entrepreneurship in Kenya. More financial opportunities, digitalization and finding role models are some of the measures that this article has identified to overcome formalization and bureaucratic barriers, poor training and societal obstacles. However, reducing registration costs, investing in more financial opportunities, appropriate training, and mentorship networks, can make great contributions. Bridging the gender gap is worth it because investing in female entrepreneurship means countering unemployment and investing in economic growth.[xix]

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[i] OECD/GWEP, Bridging the Finance Gap for Women Entrepreneurs: Insights from Academic and Policy Research, OECD Studies on SMEs and Entrepreneurship, OECD Publishing, Paris, 2025 doi.org/10.1787/75b52972-en.

[ii] Sun, Kathy, et al. “Bridging the gender gap in entrepreneurship and empowering women via Digital Technologies.” Academic Journal of Humanities & Social Sciences, vol. 7, no. 6, 2024, pp. 102–108, https://doi.org/10.25236/ajhss.2024.070618.

[iii] de la Maza, María José. “Leading with Vision: The Impact of Women in Entrepreneurship.” DoBetter, ESADE, 07 Nov. 2023, dobetter.esade.edu/en/impact-women-entrepreneurship. Accessed the 30^th December 2025.

[iv] Valladares, Claudia. “Advancing Gender Parity in Entrepreneurship: Strategies for a More Equitable Future.” World Economic Forum, 20 Jan. 2025, weforum.org/stories/2025/01/advancing-gender-parity-in-entrepreneurship-strategies-for-a-more-equitable-future/.

[v] African Development Bank Group. Affirmative Finance Action for Women in Africa (AFAWA). African Development Bank Group, 6.8 years ago, afdb.org/en/topics-and-sectors/initiatives-partnerships/afawa-affirmative-finance-action-women-africa.

[vi] Were, Anzetse. Women in the Business and Finance Landscape. FSD Kenya, October 2023, fsdkenya.org/wp-content/uploads/2023/10/Women-in-the-business-and-finance-landscape-Anzetse-Were.pdf.

[vii]  Were, Anzetse. Women in the Business and Finance Landscape. FSD Kenya, October 2023, fsdkenya.org/wp-content/uploads/2023/10/Women-in-the-business-and-finance-landscape-Anzetse-Were.pdf.

[viii] Omosa, Esther, and Remmy Naibei. “Empowering Women Entrepreneurs to Create Jobs in Kenya.” Kenya Institute for Public Policy Research and Analysis (KIPPRA), 30 June 2025, kippra.or.ke/empowering-women-entrepreneurs-to-create-jobs-in-kenya/. Accessed the 29th December 2025.

[ix] Omosa, Esther, and Remmy Naibei. “Empowering Women Entrepreneurs to Create Jobs in Kenya.” Kenya Institute for Public Policy Research and Analysis (KIPPRA), 30 June 2025, kippra.or.ke/empowering-women-entrepreneurs-to-create-jobs-in-kenya/. Accessed the 29th December 2025.

[x] Lemma, Tesfaye T., Tendai Gwatidzo, and Mthokozisi Mlilo. “Gender Differences in Business Performance: Evidence from Kenya and South Africa.” Small Business Economics, vol. 60, no. 2, 2023, pp. 591–614, doi:10.1007/s11187-022-00605-w.

[xi] Mncanca, Luvuyo. “REPORTAGE // SA Women Entrepreneurs 2024: Women Entrepreneurs in South Africa — Where They Are Headed.” Case Writing Centre Blog, University of Cape Town, 2024, uct.ac.za/casewritingcentre/blog/reportage-sa-women-entrepreneurs-2024. Accessed the 29th December 2025.

[xii] Meyer, Natanya, Mahsa Samsami, and Angus Bowmaker-Falconer. Women Entrepreneurship in South Africa: What Does the Future Hold? Global Entrepreneurship Monitor South Africa Special Report 2023/2024, Stellenbosch Business School, 2024. stellenboschbusiness.ac.za/sites/default/files/media/documents/2024-08/GEM_Womens_Special_Report_Electronic_Single_compressed.pdf.

[xiii] Mncanca, Luvuyo. “REPORTAGE // SA Women Entrepreneurs 2024: Women Entrepreneurs in South Africa — Where They Are Headed.” Case Writing Centre Blog, University of Cape Town, 2024, uct.ac.za/casewritingcentre/blog/reportage-sa-women-entrepreneurs-2024. Accessed the 29th December 2025.

[xiv] “Bridging the Gender Gap in Entrepreneurship: Kenan-Flagler.” UNC Kenan-Flagler, 16 June 2022, kenan-flagler.unc.edu/news/bridging-the-gender-gap-in-entrepreneurship/. Accessed the 29^th December 2025.

[xv] Sun, Kathy, et al. “Bridging the gender gap in entrepreneurship and empowering women via Digital Technologies.” Academic Journal of Humanities & Social Sciences, vol. 7, no. 6, 2024, pp. 102–108, doi.org/10.25236/ajhss.2024.070618.

[xvi] de la Maza, María José. “Leading with Vision: The Impact of Women in Entrepreneurship.” DoBetter, ESADE, 07 Nov. 2023, dobetter.esade.edu/en/impact-women-entrepreneurship. Accessed the 30^th December 2025.

[xvii] Valladares, Claudia. “Advancing Gender Parity in Entrepreneurship: Strategies for a More Equitable Future.” World Economic Forum, 20 Jan. 2025, weforum.org/stories/2025/01/advancing-gender-parity-in-entrepreneurship-strategies-for-a-more-equitable-future/.

[xviii] “ITC SheTrades Initiative” SheTrades.com. www.shetrades.com Accessed the 2^nd February 2026.

[xix] Rietveld, Cornelius A., and Pankaj C. Patel. “Gender Inequality and the Entrepreneurial Gender Gap: Evidence from 97 Countries (2006–2017).” Journal of Evolutionary Economics, vol. 32, 2022, pp. 1205–1229, doi.org/10.1007/s00191-022-00780-9.

Author´s biography

María Martín-Andrade holds a BA in International Relations, a LLB in Law, a LLM in Human Rights and is currently pursuing a PhD in Law at the University of Navarra, Spain. She has been a youth representative to the NGO Kinderenergy at the United Nations Headquarters in New York and has conducted her internships in World Youth Alliance and in the NATO LAND COMMAND Headquarters (Türkiye). She has also collaborated as an international analyst in the Think Tank Global Affairs and Strategic Studies.