Jijenge Credit Limited Highlights Gender Disparity in Loan Distribution
In a recent statement, Peter Macharia Kamau, Founder and Managing Director of Jijenge Credit Limited, addressed a concerning trend in the lending industry.
According to data, female borrowers have accounted for less than a third of the Sh4.733 trillion in loans disbursed over the past five years, despite demonstrating better repayment rates than their male counterparts. This disparity indicates a significant missed opportunity for lenders.
Kamau emphasized that women tend to be more reliable in repaying loans due to their risk-averse nature. “Women generally present lower risk profiles compared to men because they are more cautious with their financial decisions,” Kamau remarked. “This makes them better paymasters, yet the lending industry has not fully leveraged this advantage.”
The data reveals that, despite their strong track record in loan repayment, women receive a disproportionately smaller share of loan disbursements. Kamau’s comments suggest that lenders may be overlooking a valuable market segment that could benefit both borrowers and financial institutions.
The disparity underscores a need for lenders to reassess their strategies and consider more inclusive practices to ensure equitable access to credit. As Kamau points out, tapping into the potential of female borrowers could not only improve repayment rates but also enhance overall lending performance.
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