Beyond the Loan: What the Women Entrepreneurs Finance Code Means for Women in Construction

Beyond the Loan What the Women Entrepreneurs Finance Code Means for Women in Mjengo

In Kenya’s construction and real estate industry, women have always been part of the work, even if they were rarely seen or acknowledged. They run hardware shops, coordinate site logistics, manage supply chains, and increasingly lead architectural, engineering, and development firms. Their numbers continue to grow across the Mjengo value chain. Still, many women entrepreneurs will tell you that their biggest challenge is not skill or ambition. It is finding financial support that truly understands how their businesses operate. In an industry where capital requirements are high and timelines are long, the lack of appropriate funding has historically acted as a glass ceiling for even the most capable female builders.

This is where the Central Bank of Kenya’s adoption of the Women Entrepreneurs Finance Code becomes important. At first glance, it may seem like another policy announcement. On the ground, however, it has the potential to change how women led businesses in construction, real estate, and building supplies access and experience finance. For women who have struggled to secure funding that matches the realities of project based work, this shift could make a real difference. This initiative recognizes that a female contractor needs more than just a standard bank account. She needs a financial partner who understands the rhythm of the built environment.

For many years, efforts to close the gender financing gap focused mainly on providing loans. In the construction sector, however, poorly structured loans often create more problems than solutions. Short repayment periods, strict collateral requirements, and lack of grace periods rarely align with the way Mjengo businesses function. Payments are often delayed by government or private clients, cash flows fluctuate with the seasons, and large scale projects take considerable time to reach maturity. A standard loan with immediate repayment demands can often stifle a growing construction firm rather than help it scale.

The Women Entrepreneurs Finance Code moves the conversation beyond access to credit and instead focuses on transforming the financial system itself. Supported by the Central Bank of Kenya and global partners such as the World Bank We Fi initiative, the Code aims to ensure that financial institutions engage with women entrepreneurs in a more intentional and informed manner. It looks at the ecosystem as a whole.

A key requirement of the Code is leadership accountability. Participating banks, Saccos, and micro finance institutions are expected to appoint senior leaders who are responsible for advancing women’s financing. This matters because it shifts responsibility from individual loan officers to institutional leadership. When a woman entrepreneur applies for financing to support a supply contract, purchase equipment, or invest in real estate, her application is backed by policy commitment rather than informal judgement. This high level oversight ensures that the unique needs of women in technical sectors are prioritised within the bank’s overall strategy.

The Code also places strong emphasis on gender disaggregated data. Many financial institutions do not clearly track how much they lend to women compared to men. As a result, women led businesses often remain invisible within the financial ecosystem. By collecting and analysing this data, banks can better understand the scale, performance, and potential of women entrepreneurs in the construction value chain. This information can then be used to design financial products that reflect real business needs. For example, a bank might develop a specific product for women supplying heavy machinery or bulk materials.

Beyond financing, the Code promotes non financial support mechanisms that are particularly relevant to the Mjengo sector. These include alternative forms of collateral such as cash flows, purchase orders, equipment, or signed contracts instead of relying solely on land ownership. The Code also encourages tailored financial literacy programmes that help women contractors and suppliers manage large project finances, bid bonds, and performance guarantees. These technical tools are often the difference between winning a major tender and missing out on an opportunity.

Construction is a capital intensive industry. Whether operating a hardware store, supplying building materials, managing logistics, or developing property, access to patient and flexible capital is essential for growth. The Women Entrepreneurs Finance Code signals a shift away from uniform lending approaches toward financial solutions that recognise the realities of women led enterprises. It acknowledges that the lady running a site in Nairobi or a quarry in Machakos is a sophisticated business owner who requires sophisticated financial solutions.

As noted by Central Bank of Kenya Deputy Governor Dr Susan Koech, the goal of the Code is to close the financing gap through leadership accountability and evidence based action. For the Mjengo Hub community, this marks an important moment. It signals that the financial sector is beginning to recognise women not as a special category, but as a vital economic force. The move toward data driven lending means that women’s success stories will no longer be anecdotal. They will be reflected in the balance sheets of our leading financial institutions.

The Mjengo space is often viewed as male dominated, yet women are building, supplying, investing, and managing at unprecedented levels. The Women Entrepreneurs Finance Code represents a long overdue commitment to support this momentum and ensure that women led businesses are positioned to thrive. It is about building a foundation of financial equity that allows every woman in the construction sector to reach her full potential. As these changes take root, the entire industry stands to benefit from more diverse leadership and stronger, more resilient businesses.