Cover Photo: Members of a Table Banking group contributing their monthly shares in Samia District, Kenya. The picture was taken during fieldwork in Samia in February 2015.
IMPROVING THE POSITION OF WOMEN IN
RURAL WESTERN KENYA
THE IMPACT OF TABLE BANKING ON FEMALE ENTREPRENEURSHIP
AND HOUSEHOLD RELATIONS
Luke Shuttleworth
M.Sc. International Development Studies
Graduate School of Social Sciences
Master’s Thesis
Improving the Position of Women in Rural Western Kenya
The Impact of Table Banking on Female Entrepreneurship and Household Relations
In Collaboration with:
Name Luke Shuttleworth Student Number 10877045
E-Mail luke.shuttleworth@student.uva.nl
Course International Development Studies (M.Sc.) Supervisor Dr. Nicky Pouw
Second Reader Dr. Esther Miedema
Supervisor
Dr. Nicky Pouw
Assistant Professor, International Development Studies Graduate School of Social Sciences
Nieuwe Achtergracht 166 1018 WV Amsterdam The Netherlands E-Mail: n.r.m.pouw@uva.nl http://home.medewerker.uva.nl/n.r.m.pouw/
Second Reader
Dr. Esther MiedemaAssistant Professor, International Development Studies Graduate School of Social Sciences
Nieuwe Achtergracht 166 1018 WV Amsterdam The Netherlands E-Mail: e.a.j.miedema@uva.nl http://home.medewerker.uva.nl/e.a.j.miedema/
Local Supervisor
Dr. Hannington Odame Executive DirectorCentre for African Bio-Entrepreneurship Family Health Plaza Off-Langata Road P.O. Box 1285 Nairobi
Kenya
Abstract
The debate on whether microfinance is a useful tool to foster entrepreneurship and improve the position of women in development contexts contains a number of varying and conflicting viewpoints. Different scholars hold that rural credit schemes can either have a negligible, positive or even negative impact on rural livelihoods. This thesis project aims to add to this debate by assessing how table banking – an informal microfinance scheme – impacts on female entrepreneurship and household relations in rural Western Kenya. The analysis furthermore explores how women’s relationships with their husbands in the homestead affect their income-generating activities. Based on fieldwork which was carried out over 11 weeks in Kenya, the analysis makes use of quantitative and qualitative data and combines a relational approach with the sustainable livelihoods framework.
Overall, it is argued that table banking membership strengthens the capability of women to engage in economic activities by improving their access to financial, human and social capital. However, the extent to which these can be utilised to improve female livelihoods is dependent on external factors such as the local climatic, economic and social-cultural conditions. One such factor includes the nature of household relations where it is assumed that collaboration between spouses in the homestead improves women’s income-generating projects. By contrast, situations where either the husband or wife dominates the household are assumed to obstruct women in their economic activity due to a higher workload, more conflicts and – in situations of male dominance – less control over household income and decision-making procedures. It is suggested that table banking improves female entrepreneurship when an increased capital endowment leads to more collaboration in the household. However, table banking may also hinder collaboration if it enables a woman to dominate in the household or if it fosters conflict through male resistance to women going beyond their traditional domestic role.
Keywords: Table Banking, household relations, female entrepreneurship, sustainable livelihoods
Table of Contents
List of Figures ... 1
List of Tables ... 1
List of Maps ... 1
List of Images ... 1
Abbreviations ... 2
Local Words ... 3
Chapter 1 – Introduction ... 4
Chapter 2 – Theoretical Framework ... 6
2.1 Development Conceptualisations and Critiques ... 6
2.1.1 Modernisation and Post-Development ... 6
2.1.2 Inclusive Development ... 7
2.2 Table Banking and the Sustainable Livelihoods Approach ... 8
2.2.1 Rural Credit and Table Banking ... 8
2.2.2 Microfinance and Neoliberalism ... 9
2.2.3 The Sustainable Livelihoods Approach ... 9
2.3 Household Relations and the Social-Relational Approach ... 12
2.3.1 Household Relations in Rural Kenya ... 12
2.3.2 Feminist Views on Development ... 13
2.3.3 The Social-Relational Approach ... 14
2.4 The Conceptual Scheme ... 15
2.5 Conclusion ... 17
Chapter 3 – Research Context ... 18
3.1 Political, Economic and Social Characteristics of Kenya ... 18
3.1.1 Political and Economic Context ... 19
3.1.2 Gender Inequality ... 21
3.2 Political, Economic and Social Characteristics of Samia District ... 23
3.2.1 Political and Economic Context ... 24
3.2.2 Gender Inequality in Busia ... 26
3.3 The Centre for African Bio-Entrepreneurship and Table Banking ... 26
3.3.1 Table Banking In Kenya ... 26
3.3.2 The Centre for African Bio-Entrepreneurship ... 28
Chapter 4 – Methodology ... 29
4.1 Research Questions and Units of Analysis ... 29
4.1.1 Research Questions ... 29 4.1.2 Units of Analysis ... 30 4.2 Research Design ... 30 4.2.1 Critical Realism ... 30 4.2.2 Mixed Methods ... 32 4.3 Data Collection ... 32 4.3.1 Quantitative Methods... 32 4.3.2 Qualitative Methods ... 34 4.4 Data Analysis ... 36
4.4.1 Procedures and Criteria of Quality ... 36
4.4.2 Limitations ... 38
4.5 Ethical Considerations ... 38
4.6 Conclusion ... 39
Chapter 5 – The Main Obstacles to Female Entrepreneurship ... 40
5.1 Female Entrepreneurship in Samia District ... 40
5.1.1 Livelihood Activities in Samia District ... 40
5.1.2 Capital Endowment ... 41
5.2 Economic and Climatic Constraints ... 44
5.2.1 Economic and Climatic Conditions in Samia District ... 44
5.2.2 Effect on Accumulation and Utilisation of Economic Capital ... 47
5.3 Gender Relations ... 48
5.3.1 Traditional and Progressive Structures ... 48
5.3.2 Functional and Dysfunctional Relationships ... 50
5.3.3 Typology ... 52
5.4 Conclusion ... 57
Chapter 6 – Table Banking and Capital Endowments ... 58
6.1 Table Banking Membership and the Capital Endowment ... 58
6.1.1 Financial Capital ... 58
6.1.2 Human Capital ... 60
6.1.3 Social Capital ... 62
6.2 Capital Endowment and Improved Livelihoods ... 64
6.3 Table Banking and its Limitations ... 66
6.3.1 Capital Constraint ... 66
6.3.2 Training ... 67
6.4 Conclusion ... 69
Chapter 7 – Table Banking and Household Relations ... 71
7.1 Describing Household Relations ... 71
7.1.1 Limitations of the Dichotomy ... 71
7.1.2 Household Relations on a Continuum ... 72
7.2 Household Relations and Female Entrepreneurship ... 76
7.3 Table Banking and Household Relations... 79
7.4 Conclusion ... 81
Chapter 8 – Conclusion ... 82
8.1 Main Findings ... 82
8.1.1 The Main Obstacles of Female Small-scale Entrepreneurs in Samia District ... 82
8.1.2 The Effect of Table Banking on Female Entrepreneurship ... 83
8.1.3 Table Banking and Household Relations ... 83
8.1.4 Answering the Main Research Question ... 84
8.2 Reflections ... 85
8.2.1 Theoretical Reflections... 85
8.2.2 Methodological Reflections ... 87
8.3 Recommendations ... 88
8.3.1 Policy Recommendations ... 88
8.3.2 Recommendations for Future Research ... 90
Acknowledgements ... 92
References ... 93
Appendix A – Operationalisaton Table ... 100
Appendix B – Data Reference Tables ... 105
Appendix C – Overview of Survey Respondents ... 108
Appendix D – Quantitative Data Tables ... 109
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List of Figures
Figure 1: The Sustainable Livelihoods Approach ... 11
Figure 2: Conceptual Scheme ... 16
Figure 3: Kenya’s Economy by Sector (percentage of GDP) ... 20
Figure 4: The Social Institutions and Gender Index – Kenya 2014 ... 22
Figure 5: Typology – Structures/Household Relations ... 53
Figure 6: Continuum between ‘Male Dominance’ and ’Female Dominance’ ... 72
Figure 7: Revised Conceptual Scheme ... 86
List of Tables
Table 1: Survey Respondents by Table Banking Group and Gender (N=112) ... 33
Table 2: Table Banking Members’ Main Livelihood Activities (N=112) ... 40
List of Maps
Map 1: The Republic of Kenya – Geographical Location and Characteristics ... 18
Map 2: Samia District, Busia County ... 23
List of Images
Image 1: Road in Funyula Town, Samia District ... 24
Image 2: Women’s Group’s Merry-go-round in Samia District ... 27
Image 3: Table Banking Meeting in Samia District ... 35
Image 4: Members presenting their Drawings at a Focus Group Discussion ... 36
Image 5: Focus Group Discussion Output – Investing in Economic Activities ... 41
Image 6: Drip Irrigation System in Bukiri, Samia District ... 46
Image 7: FGD Output – Functional and Dysfunctional Relationships ... 56
Image 8: FGD Output – The Benefits of Joint Activities ... 65
Image 9: FGD Output – Loan Use... 67
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Abbreviations
CABE Centre for African Bio-Entrepreneurship CIA Central Intelligence Agency
DFID Department for International Development FGD Focus Group Discussion
GDP Gross Domestic Product FDI Foreign Direct Investment
IFAD International Fund for Agricultural Development IGA Income-generating Activity
IMF International Monetary Fund JoyWo Joyful Women Organisation KMS Kenya Ministry of State KWFT Kenya Women Finance Trust MFI Microfinance Institution
MGR Merry-Go-Round
NGO Non-Governmental Organisation ODM Orange Democratic Movement
ROSCA Rotating Savings and Credit Association SIGI Social Institutions and Gender Index SLA Sustainable Livelihoods Approach SRA Social-Relational Approach
TB Table Banking
UN United Nations
UvA University of Amsterdam
WB World Bank
WEF Women Enterprise Fund YEF Youth Enterprise Fund
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Local Words
Asante Thank you
Baraza Regular meeting between District Chief and inhabitants of the area Boda-Boda Motorcycle
Chang’a Homebrewed alcohol
Giglis Type of parasite prevalent in the area Harambee Literally means ‘all pull together’ Kisamia Local language in Samia District Kiswahili Swahili
Mzungu Literally means ‘aimless wanderer’
Omena Type of fish which is caught and sold in the area Posho Mill Mill which is used to make flour
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Chapter 1 – Introduction
Background of the Study
For the past four decades, microfinance has been promoted as a versatile tool to combat poverty and enable countries to achieve their development goals and is supported by organisations such as the World Bank (WB) and the United Nations (UN) (Lim, DeNoble & Varaiya, 2006). The rationale is that by addressing a lack of access to financial services, microfinance enables people to run an income-generating activity (IGA) and improve their livelihoods. It has furthermore been argued that microfinance can have positive social effects by empowering women to overcome constraints related to institutionalised gender inequality (Kim et al., 2007; Hashemi, Schuler & Riley, 1996). Hence, by fostering female entrepreneurship, women are assumed to gain financial independence and improve their standing vis-à-vis their male counterparts (IFAD, 2009). However, the potential of microfinance to foster entrepreneurship and gender equality in development contexts is disputed with empirical research offering mixed results. Hence, Banerjee and Duflo (2011) argue that microloans are often used for consumption smoothing and social needs as opposed to entrepreneurship. Furthermore, Kabeer (2005) and Cons and Paprocki (2010) question the notion that financial independence gives women more bargaining power in the household. Concurrently, Dobra (2011), Francis (1998) and Amuyuzu-Nyamongo and Francis (2006) suggest that increased female entrepreneurship can upset traditional structures and result in backlash and increased vulnerability of women. This thesis project aims to contribute to the debate on microfinance’s effect on livelihoods and gender inequality in a rural setting. More specifically, the study focuses on how table banking (TB) – an informal rural credit scheme – affects the livelihoods of female small-scale entrepreneurs in rural Western Kenya. The programme under study was initiated by the Centre for African Bio-Entrepreneurship (CABE) – a Kenyan NGO – in Samia District in 2011 (CABE, 2012). The analysis focuses on the effects of TB on the IGAs of female small-scale entrepreneurs in Samia District whilst also exploring how it affects household relations. Hence, the following main research question has been formulated:
‘How do Kenyan Table Banking activities enhance female entrepreneurship, and how do they affect gender relations in the household?’
Problem Statement and Purpose
Attempting to improve female livelihoods in rural Western Kenya can be justified by the studies of IFAD (2009), Moss (2002) and Mwobobia (2009) that show how gender inequality has negative social and economic outcomes. The literature on how microfinance improves female livelihoods by fostering entrepreneurship, however, provides mixed results. Academic debates on the issue are often criticised
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for their reliance on simplistic conceptions of female livelihoods in rural areas whilst also neglecting the complexity and importance of a woman’s relationship with her husband in the homestead (Okali, 2011, 2012; Locke and Okali, 1999; Kabeer, 2005). Thus, development interventions frequently focus on the female perspective and fail to identify the role that men play in improving the position of women in rural areas. Neglecting relationships often fuels the belief that female entrepreneurship and individual agency can be fostered in a linear process that only involves enhancing the capabilities of women without considering how relations in the home might be affected. This thesis project aims to provide a comprehensive understanding of how TB affects female livelihoods by including the role that relationships play in this interaction. The study takes an explanatory approach when looking at how TB improves women’s capability to engage in economic activities. However, the analysis into household relations follows a more exploratory approach to avoid the use of common assumptions and allow for an analysis that inductively investigates the role that relationships play in female livelihood outcomes.
Outline of the Study
The next chapter details the theoretical framework which adds a social-relational perceptive to the Sustainable Livelihoods Framework and incorporates the main concepts of table banking, female entrepreneurship and household relations, as well as their inter-relationships. After introducing the research context (Chapter 3), Chapter 4 continues with the methodology which employs quantitative and qualitative techniques in a mixed methods approach. This precedes three empirical chapters, the first of which looks into how local economic conditions and institutionalised gender inequality affect female entrepreneurship in Samia District (Chapter 5). Chapter 6 continues with an analysis of how TB strengthens the capabilities of female group members to carry out IGAs. The final empirical chapter explores the relationship between TB membership and household relations as well as how female small-scale entrepreneurs’ relationship in the homestead affects their economic activities (Chapter 7). The thesis concludes by answering the main research question and reflecting on the theoretical framework, conceptual model and methodology of the study (Chapter 8). Finally, recommendations for further research and policies are given.
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Chapter 2 – Theoretical Framework
This thesis project draws on literature related to the Sustainable Livelihoods Approach (SLA), the Social Relational Approach (SRA), gender inequality and rural credit. The following shows how these different strands can be united into one framework and provides the basis for the operationalisation, data collection and analysis processes. The first section begins with a discussion of the concept of development and its critiques. Section 2.2 then shows how utilising the SLA enables an inclusive development approach to the main concept of TB. Section 2.3 provides a discussion on how the SRA is used to describe household relations in Samia District which precedes an analysis of how the main concepts and strands of literature are embedded into one framework in section 2.4 and 2.5.
2.1 Development Conceptualisations and Critiques
2.1.1 Modernisation and Post-Development
Development as a concept has often been equated with economic growth whereby it is assumed that an increase in economic output automatically leads to higher welfare and prosperity for a given population (Peet & Hartwick, 2009). Whilst it is held that economies may differ in their makeup and level of progress, it is still expected that processes such as industrialisation, commercialisation and liberalisation lead to development. Here, Rostow (1959) identifies five stages of economic growth detailing a country’s journey from being a ‘traditional society’ to reaching the ‘age of high mass
consumption’. Hence, it is implied that by following the modernisation path of more advanced
economies, countries in the Global South are able to develop successfully (Peet & Hartwick, 2009). The decades since Rostow’s (1959) work have seen variables such as employment, trade and macroeconomic stability being added to the approach (Peet & Hartwick, 2009). Nevertheless, the focus on growth and efficiency has prevailed, particularly with the consolidation of a dominant neoliberal paradigm from the 1990s onwards (Gupta et al., 2015). Critiques of this approach hold that it neglects the heterogeneity of developing countries as well as the negative economic and social consequences of growth-oriented strategies (Baulch, 2006; Sachs, 2004; Kanbur & Rauniyar, 2010). Consequently, Stiglitz (2006) argues that whilst policies that achieve increased integration in developing countries often lead to GDP growth, they frequently also result in higher unemployment and social inequality. Hence, a focus on accumulation coupled with secondary attention paid to the issue of distribution is assumed to lead to a setup where poverty levels rise as wealth becomes more concentrated (ibid.). A number of scholars, therefore, encourage an approach that goes beyond the pursuit of GDP growth and incorporates indicators related to human wellbeing, equality and sustainability (Stiglitz, Sen & Fitoussi, 2009; Kanbur & Rauniyar, 2010; Narayan et al., 2009).
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Coming from a post-development paradigm, Escobar (1995) views development as a tool of Western countries to advance their interests in the Global South. In turn, native populations are hindered from exercising self-determination and utilising indigenous knowledge and culture to progress and solve local problems. Furthermore, the scholar laments that ‘underdeveloped’ countries are grouped together as a homogeneous category based on narrow economic indicators (ibid.). The problem of this linear approach to development is reaffirmed by Esteva (2010) who holds that local communities are hampered by the top-down and paternalistic mode of development. Thus, by enforcing a universal pathway to development on countries based purely on modernisation and capital accumulation, the space in which local issues can be dealt with in a context-specific approach is marginalised. Rist (2006) sums up the problem of having a top-down approach to development by pointing out the failure of macro-level policies based on economic analyses to properly align themselves to the complexity of social reality. Whilst the post-development paradigm does not remain free of criticism itself, the most prominent accusations being that it views development as a unitary field of study and romanticises indigenous practices (Ziai, 2004), it underlines the inadequacy of narrow and reductionist solutions to development issues.
2.1.2 Inclusive Development
This thesis project acknowledges the preceding critiques without rejecting the notion of development out of hand. Hence, an inclusive development approach is taken which expands on the range of factors that influence the wellbeing of individuals by focusing on voice and empowerment, social equity, sustainability, and social justice (Gupta et al., 2015). However, inclusive development not only distinguishes itself from previous approaches by adding non-monetary indicators to its framework, but also by assuming a complex social reality where people’s wellbeing is shaped by multiple interacting economic and social factors in a multifaceted local context (ibid.). In contrast, growth-oriented approaches are constrained by the assumption that market forces and the rational utility-maximising behaviour of individuals are the sole determinants of the allocation of resources in a given context. Here,Pouw and McGregor (2014) argue that such an approach fails to correspond to reality on the ground and that the distribution of resources can be shaped by unequal power relations and social mechanisms. Furthermore, agency is thought to be influenced by personal and contextual factors with people assumed to have interacting individual and collective preferences as opposed to static, rational ones (ibid.). The notion of collective preferences points towards the relational aspect of agency whereby people may act as individuals or as part of a wider group. Finally, an inclusive development conception of wellbeing, next to having material and relational elements, is assumed to depend on the given context and the subjective views of individuals (ibid.). Such an idea of wellbeing
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runs counter to the neoclassical notion of welfare which is assumed to be improved by adding financial resources to the asset base of individuals.
2.2 Table Banking and the Sustainable Livelihoods Approach
2.2.1 Rural Credit and Table Banking
According to the UN (2013), microfinance programmes can help rural populations achieve economic growth and job creation as well as improvements in education, food security and public health. Thus, Burgess and Pande (2003) argue that rural banks in India succeed in promoting wage growth, poverty reduction and gains in human capital. It is assumed that by improving access to financial services, the rural poor are able to set up income-generating activities (IGAs) and improve their livelihoods (IFAD, 2009). Besides boosting economic activity, Miller, Hamp and Bogart (2013) argue that microloans make households more resilient to shocks. In this regard, rural credit programmes are framed as a response to capital constraint by offering loaning services to individuals who lack access to financial institutions (Christen et al., 2004; Davis et al. 2010). The main obstacle to accessing credit in rural Kenya is the inability of potential clients to put up collateral (Dupas et al., 2012; Christien, Rosenberg and Jayadeva, 2004). However, scholars such as Banerjee and Duflo (2011) and Dobra (2011) argue that the provision of credit alone is insufficient to effectively lower poverty whilst the loans might not even be invested in economic activities but rather used for social needs and emergencies. In this regard, the assumed linear positive relationship between access to credit and improved income-earning opportunities is questioned. Scholars such as Hashemi (1996) and Soares et al. (2009) argue that by targeting women, MFIs can improve women’s position in the household by increasing their financial independence and bargaining power. However, Feldman (1983), Cons and Paprocki (2010) and von Bülow and Sorensen (1993) also highlight situations where giving women access to loans can upset traditional norms which may ultimately have the opposite effect and render women more vulnerable than before.
Rural credit programmes take on various forms ranging from hierarchical top-down projects to smaller rural endeavours. In its more informal setup, forming groups to receive loans can prevent problems related to asymmetric information that arise between conventional banks and clients (Wydick, 1999). Thus, if money is lent to a group, the members can use peer pressure to ensure repayment, whilst also forming social ties to aid one another in emergencies (Wydick, 1999; Paxton, Graham & Thraen, 2000; Wenner, 1995; Thomas, 1987). According to Gugerty (2007) and Dupas and Robinsion (2009) – who researched Rotating savings and credit associations (ROSCAs) – being a member of a lending group is widespread in rural Kenya. The main rural credit programme under study is table banking which is an
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informal type of microfinance where people form groups to pool their financial resources together. The financial resources of the group are then loaned out to individual members who then invest in micro-enterprises in a bid to boost their livelihood projects (JoyWo, 2015). TB may also include economic activities that are carried out in a group, as well as trainings in business management and loan use. Groups often also work as a support mechanism either by introducing emergency loan products, or else through group dynamics, assisting each other in times of need. However, TB is not a uniform concept as displayed by each group’s own set of internal rules on how to deal with issues such as membership, loan conditions and procedures for dealing with issues of late repayment.
2.2.2 Microfinance and Neoliberalism
One of the main criticisms of microfinance programmes is that they have a top-down organisational makeup which fails to correspond to local settings (Dobra, 2011). Cons and Paprocki (2010) further this critique by highlighting microfinance’s neoliberal roots in that poverty is seen as a capital constraint remedied by market access and integration of the poor into value chains. Thus, by turning the poor into economic actors, they are able to lift themselves out of poverty in a process of self-help (ibid.). The authors continue that such measures may disrupt cohesion within communities and encourage dependency (ibid.). Overall, TB exhibits the main tenets of microfinance in the provision of loans and fostering of entrepreneurship. However, one of the main differences between TB and conventional MFIs in Kenya is the lack of commercialisation of the former. TB groups employ lower interest rates and largely operate by utilising resources pooled by members. Thus, whilst CABE do provide top-up loans to groups in a hybrid TB model, groups are able to maintain their small-scale character by not being over-reliant on external funding. Ideally, TB addresses the constraints of female smallholders by enhancing their financial, human and social capital. The small-scale and local character of CABE means that the organisation is better able to respond to local conditions and vulnerabilities than larger MFIs. This difference reflects the findings of Shah (2013) who states that smaller financial institutions are more attuned their local environment leading to more innovative and context-specific measures. Lehmann (2014) furthermore argues that CABE’s TB project is rooted in Kenyan culture.
2.2.3 The Sustainable Livelihoods Approach
To address the post-development critique and employ an inclusive development approach to the analysis, the SLA has been selected to examine TB and female small-scale entrepreneurs in Samia District. The framework enables an analysis of rural livelihoods that goes beyond individuals’ ability to gain an income and employment (Scoones, 1998, 2009). The SLA furthermore aligns itself to the
post-10
development critique by applying a bottom-up approach to development issues which emphasises the subjective and complex nature of the local context. In addition, applying the SLA facilitates an investigation into individual outcomes in a people-oriented approach as opposed to one focused on growth and productivity (Chambers, 1988; Mazibuko, 2013). In the former approach, the role of agency is emphasised whereby the assets and capabilities of an individual are analysed which counters top-down approaches which view the ‘poor’ as powerless actors. Thus, emphasis is put on the strengths of people as opposed to focusing on what they are lacking (Chambers, 1988; Murray, 2001; Kaag et al., 2003). Here, people are assumed to be engaged in multiple livelihood strategies as opposed to waiting for external assistance (Adato & Meinzen-Dick, 2003; de Haan, 2012). In addition to analysing the assets that a person possesses, the SLA looks at how institutional structures affect the capabilities and livelihoods of individuals in an attempt to bridge the gap between micro- and macro-level processes (Scoones, 2009). Hence, the approach facilitates an analysis of a person’s livelihood and individual agency whilst also being able to embed this into the broader institutional context. Leaning heavily on Sen’s (1999) capability approach, the SLA furthermore addresses poverty by analysing the subjective experiences of the poor. The origin of the approach is often mainly attributed to Chambers and Conway (1992) who define livelihood as
‘the capabilities, assets (stores, resources, claims and access) and activities required for a means of living; a livelihood is sustainable which can cope with and recover from stress and shocks, maintain or enhance its capabilities and assets, and provide sustainable livelihood opportunities for the next generation; and which contributes net benefits to other livelihoods at the local and global levels and in the short and long-term’ (ibid., p.6).
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Figure 1: The Sustainable Livelihoods Approach
Source: DFID (1999, p.1)
Figure 1 shows the main mechanisms of the SLA. First of all, the vulnerability context determines how livelihoods are affected by factors such as the area’s economic, social-cultural and political makeup. In general, an individual’s stock of livelihood resources – including human, natural, financial, social and physical capital – determines the type of livelihood strategies that are available in a given context (Farrington et al., 1999). These capitals may complement and reinforce one another (Sen, 1999) whilst a lack of capitals lowers an individual’s ability to achieve a sustainable livelihood. Institutional processes are highlighted as key in determining an individual’s access to livelihood resources as well as the extent to which these can be used in a livelihood strategy. Hence, a person’s vulnerability context is determined by institutions which determine the capital endowment and agency that an individual possesses to pursue a sustainable livelihood (De Haan, 2002). Finally, the interaction between capital endowment and institutional context determines an individual’s livelihood strategies and outcomes. In turn, outcomes are assumed to influence the capital endowment of individuals. Applying the SLA enables an inclusive development approach to TB by assuming that livelihood strategies result from an interaction of economic, social, environmental and institutional components. For TB and female entrepreneurship, the focus is not only on the provision of financial assets, but also on the extent to which female members’ agency is influenced by their access to capitals and ability to utilise these. The analysis into female agency therefore includes looking at how capital endowments and institutional structures interact and are influenced by one another. Furthermore, the SLA enables
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an approach that recognises the subjective nature of people’s perceptions and experiences which corresponds to the previously mentioned subjective element of wellbeing.
2.3 Household Relations and the Social-Relational Approach
2.3.1 Household Relations in Rural Kenya
Kenya’s initial patriarchal setup can be traced back to traditional Kenyan culture and was exacerbated in colonial times when the British Empire preferred to educate and give an economic role to men1
(Kassie et al., 2013; Mueller & Mulinge, 2001). Such incidences indicate how gender inequality is constructed and reinforced by external forces rather than being a natural occurrence. Accordingly, Ridgeway and Correll (2004, p.510) state that gender is an ‘institutionalised system of social practice for constituting people as two significantly different categories, men and women, and organising social relations of inequality on the basis of that difference’. In this thesis project, gender is seen as a socially-constructed concept. Therefore, gender-based differences are seen as the result of the institutionalisation of an unequal distribution of power between male and female members of society. The approach mirrors the work of Beard and Cartmill (2007), von Bülow and Sorensen (1993), Binci (2014), Kiriti and Tisdell (2003) and Agarwal (1997).
Agesa et al. (2013) and Jagongo (2012) argue that the main driver behind gender inequality in Kenya is unequal access to education. Inequality in education leads to differences in competences and skill-sets putting women at a disadvantage on the labour market (Boehe & Cruz, 2013) and reinforcing restrictive cultural norms and beliefs (Jagongo, 2012). Shabaya and Konadu-Agyemang (2004) add that this process is more pronounced in rural areas with Kiriti and Tisdell (2003) suggesting that families believe that sending their sons to school entails lower opportunity costs2. Kenyan girls are thus often
prevented from going to school and instead encouraged to focus on their childbearing responsibilities (Kabubo Mariara, 2003). Nevertheless, Binci (2014) argues that women are still expected to fulfil a reproductive and productive role by earning an income. The dual role is analysed in a Kenyan context by Feldman (1983) who argues that rural women traditionally have heavy workloads through a combination of domestic work and casual labour. In this setup, women provide most of the labour in agricultural activities whilst also completing household duties, but fail to gain control over their productive resources (Feldman, 1983; IFAD, 2009; Kabubo Mariara, 2003; Whitehead, Adepoju &
1 The focus on men was based on the assumption that they are more productive and can provide
more labour than their female counterparts.
2 Here, it is assumed that girls are assigned household tasks and that they would not be able to
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Oppong, 1994). Patriarchal structures therefore negatively affect women in the household as well as in their economic activities.
2.3.2 Feminist Views on Development
From a feminist perspective, development is criticised because most of the literature in the field is provided by Western scholars (Peet & Hartwick, 2009). Neglecting academics from the Global South thus leads to simplistic perceptions whereby women in developing countries are assumed to be victims or heroines in a patriarchal society (Okali, 2011, 2012; Beard & Cartmill, 2007). Such analyses reflect an ideological and unreflexive approach to gender issues, focusing on outcomes rather than processes (Locke & Okali, 1999). In this regard, common assumptions of women in developing countries include that they are poor, have limited control over resources, are risk averse, altruistic and lack individual agency to improve their situation (Okali, 2006). Such a narrow view runs the risk of seeing gender relations as fixed which, in turn, may lead to policies which neglect the mechanisms and interdependencies underlying a woman’s position in society (Locke & Okali, 1999). An example for this is how household relations are analysed either with the assumption families have uniform preferences or that they are made up of members with individual and sometimes conflicting goals (Okali, 2011, 2012).Scholars such as von Bülow and Sorensen (1993), Whitehead et al. (1994) and Telalagic (2014) show how spouses also have collaborative goals – dispelling the notion that a household is either dominated by a man or else defined by the conflicting interests of its male and female members. Similarly, Agarwal (1997) shows how neglecting the institutional context’s influence on social relations leads to simplistic analyses of bargaining processes in the household. It is argued that in a patriarchal society, women have fewer outside options than men with unmarried women having less access to resources such as land and credit. This dependence of women on their husband therefore influences bargaining in the household. Finally, women are often viewed as a homogeneous group which ignores how women may differ greatly in their socioeconomic backgrounds and livelihood opportunities (Okali, 2006).
The SLA’s focus on quantifying and increasing capitals reflects a failure to comprehensively incorporate power relations into its framework which, in turn, leads to analyses that take conditions such as female poverty or male domination as natural and static (Scoones, 2009; Mazibuko, 2013; Kaag et al., 2003; Adato & Meinzen-Dick, 2003, Krantz, 2001). Feminist approaches to development emphasise the role of social structures and how these influence the opportunities and constraints of women. Whilst the SLA focuses on individual agency, a relational approach assumes an interaction between individual and collective agency and social structures which influence the wellbeing of individuals. The social relations of a person are assumed to produce and reinforce disadvantages as
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well as offer a support mechanism through networks of family and friends (WB, 2012). Social relations can therefore drive inequality and – like the capital endowment of an individual – are produced by the institutional framework that the person faces (ibid.). From an inclusive development perspective, applying the SLA enables an analysis into the material wellbeing of individuals which incorporates subjective perceptions of their needs. The framework furthermore goes beyond mere income-related indicators by embedding people’s individual agency and capabilities into their institutional context. However, to incorporate relational wellbeing and investigate how female small-scale entrepreneurs’ livelihoods are influenced by their relationships, a Social Relational Approach is added to the theoretical framework.
2.3.3 The Social-Relational Approach
The Social Relational Approach (SRA) was developed by Kabeer (1994) and employs a socialist feminist philosophy in the analysis of gender issues. The approach’s key elements include human wellbeing, social relations and institutional analysis (ibid.). Not unlike the SLA, the SRA sees as a starting point the need to focus on human wellbeing as opposed to reducing development to an analysis of economic growth and efficiency (WB, 2012). However, the SRA departs from the former by holding that gender relations are context-specific and dynamic. In this, it is assumed that the institutional framework shapes gender relations and that inequality may be derived from and reproduced in the household, community and also in the market (ibid.). This highlights a process whereby social relationships are created by institutions and that these may have a positive or negative impact on an individual’s livelihood with an example being how women’s outside options can be shaped by the institutional structures in which she is embedded in3 (Agarwal, 1997). However, these conditions are not static and
may be renegotiated through institutional change, external interventions or even through individual agency. The main drawbacks of the SRA include that it entails a complicated analysis and that the focus on institutional context often downplays the importance of individual agency (WB, 2012). To counter the concern that the analysis of unequal gender relations in Western Kenya may become too broad, the focus is limited to an analysis of the relationships that women have in the household which typically refers to relationships between spouses.
3 Agarwal (1997) argues that in some contexts women have less access to financial and physical
resources when they are unmarried. In turn, husbands can use this dependence to increase their bargaining power in the household. However, when women have more outside options, for instance by being embedded in contexts where unmarried women are not discriminated against, they are able to have more bargaining power in the household.
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2.4 The Conceptual Scheme
The three main concepts under study are female entrepreneurship, table banking and household relations. Figure 2 shows how these elements are incorporated into one conceptual framework. The scheme is strongly based on the SLA although the focus is put on financial, human and social capital. Whereas financial capital relates to the access to credit of female entrepreneurs, human capital relates to their skills and experience which can be used for an economic activity. The focus of human capital is on education, either through schooling or work experience and seminars whilst also leaving room for informal ways to gain skills. Putnam (1993) sees social capital as relationships between individuals where the norms of trustworthiness and reciprocity are fostered and where social interaction produces mutual gains (Putnam, 2001). The degree of social capital may be analysed through a given person’s embeddedness in a community which includes affiliations with family and friends, membership of social networks and organisations, as well as further informal contacts (Honig, 1998). Mwangi and Ouma (2012) argue that social capital furthermore decreases household’s susceptibility to shocks4.
4 The authors claim that increased social capital may entail increased access to spontaneous and
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Figure 2: Conceptual Scheme
The vulnerability context of female small-scale entrepreneurs relates to being situated in a rural economy5 and being subjected to unequal gender relations6 which together lower their stock of
financial, human and social capital. Under the assumption that a restricted capital endowment lowers the ability of female entrepreneurs to achieve a sustainable livelihood, TB is framed as a tool to enhance women’s capital endowment by providing loans and organising seminars. The fact that TB is
5 The assumption of being situated in a rural economy is that there is a lack of formal financial
institutions to apply for loans, thus lowering access to financial capital.
6 As discussed in the preceding sections, being subjected to unequal gender relations may leave
women with less education whilst also being confined to a domestic role in the household which lowers their exposure to activities outside of the homestead – thus lowering their human and social capital. Financial capital is lowered by traditional norms that dictate that men should control financial resources whilst the lack of land ownership lowers women’s ability to put up collateral for financial services.
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strongly influenced by social relations through interactions during meetings and joint activities entails that members broaden their network and have access to an informal insurance mechanism, thus improving social capital. Household relations as a concept is not fully integrated into the scheme which is a reflection of the exploratory approach which is taken towards the relationship between household relations and an improved capital endowment.
2.5 Conclusion
The thesis project is based on the sustainable livelihoods framework to which a relational approach has been added and includes three main concepts – household relations, table banking and female entrepreneurship. The theoretical framework responds to post-development and feminist critiques of development by enabling an analysis of livelihoods of female small-scale entrepreneurs that considers their capabilities and agency, as well as how these are shaped by wider institutional structures and social relations. Furthermore, the framework is based on an inclusive conceptualisation of development which offers a more comprehensive analysis of social reality than growth-oriented approaches. Hence, the approach – beyond expanding its scope to non-monetary indicators – uses the SLA and SRA to describe a complex and dynamic local context which is dependent on the interaction of a number of economic, social-cultural and political factors. Whilst the subjective and material elements of wellbeing are covered by the SLA, the relational aspect of wellbeing and how people may have interacting individual and collective interests is applied through the SRA.
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Chapter 3 – Research Context
This chapter describes the main research area of Samia District which is located in rural Western Kenya. The prevalence of gender inequality and the role that TB plays in the area are also addressed. Section 3.1 and 3.2 begin with the main political, social and economic characteristics of Kenya and Samia District respectively. The final sections 3.3 and 3.4 then describe the role of CABE and TB in Samia.
3.1 Political, Economic and Social Characteristics of Kenya
The Republic of Kenya is a Sub-Saharan Country located in Eastern Africa. It shares borders with Ethiopia in the North, Somalia towards the North-East, Tanzania in the South, Uganda in the West and South Sudan towards the North-West. Kenya has a coastline of 536km on the Indian Ocean and borders Lake Victoria in the West. The capital is Nairobi with approximately 3.375 million inhabitants, with the second-largest city being Mombasa with an estimated population of 966,000 (CIA, 2015). The overall area of Kenya is approximately 580,367km² with the highest peak being Mount Kenya which stands at 5,199m (ibid.). The climate can be described as tropical along the coast and arid within the country which makes the Western and especially the Northern parts of the country vulnerable to droughts. However, numerous regions are also susceptible to floods during the rainy seasons (ibid.).
Map 1: The Republic of Kenya – Geographical Location and Characteristics
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The population is approximately 45 million and is split up into a number of ethnic groups. The largest group is the Kikuyu tribe7 which accounts for approximately 22% of the population (ibid.). The next
largest groups are the Luhya (14%), the Luo (13%), the Kalenjin (12%) and the Kamba (11%) tribes (ibid.). Meanwhile, the Kisii and the Meru each make up around 6% of the population with the rest being split up into a number of smaller groupings. Tribal fragmentation is evident in the number of languages that are spoken in Kenya which – next to the main languages of English and Kiswahili – include 66 local languages (Laurien, 2010). Nevertheless, Christianity has been able to establish itself as the dominant religion with an estimated 82.5% of the country’s inhabitants being Christians whilst the next largest religion in Kenya is Islam which covers 11.1% of the population (CIA, 2015).
3.1.1 Political and Economic Context
Upon gaining independence from the United Kingdom in late 1963, Jomo Kenyatta of the Kenya African National Union was elected as the first president of the country until his death in 1978 upon which Daniel Arap Moi became Kenya’s second leader until 2002 (Laurien, 2010). The two regimes successfully set up a one-party authoritarian political system characterised by widespread allegations of corruption and a lack of civil rights (Lindner, 2014). In this period, both Kenyatta and Moi were accused of looting state assets, political cronyism and economic mismanagement (ibid.). Moi’s regime effectively established a dictatorship and did not introduce a multi-party system and elections until 1992 (Laurien, 2010). Despite being elected on the back of an anti-corruption campaign in 2002, Mwai Kibaki’s regime became embroiled in a number of high-profile political scandals (ibid.). When Kibaki controversially won re-election in 2007 amid reports of electoral fraud, the country plunged into crisis with over 1,000 citizens being killed as a result of ethnic violence and tribal conflict (Masakhalia, 2011). In February 2008, the African Union intervened and appointed Raila Odinga of the opposition Orange Democratic Movement (ODM) as Prime Minister of the country to rule alongside Kibaki (Laurien, 2010). In 2013, Uhuru Kenyatta8 was elected as Kenya’s fourth leader. Despite the country stabilising,
Kenyatta’s victory has been criticised amid reports of electoral irregularities and the fact that Kenyatta himself was subject to an investigation of the International Criminal Court for his role in the 2007-2008 Kenyan Crisis9 (Lindner, 2014).
Kenya has East Africa’s largest economy with a gross domestic product (GDP) of €33.2billion in 2013 (Eurostat, 2015). The country has enjoyed rapid economic expansion although this is also connected
7 The current president Uhuru Kenyatta belongs to this tribe.
8 Uhuru Kenyatta is the son of the first Kenyan president Jomo Kenyatta. 9 The case against Kenyatta has since been discontinued.
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to its high population growth10. Consequently, per capita GDP growth has fluctuated between 1.7%
and 2.7% from 2011 to 2014 (ibid.). Figure 3 shows how more than half of Kenya’s GDP is accounted for by the service sector which is followed by agricultural activities and industry (Eurostat, 2015)
Figure 3: Kenya’s Economy by Sector (percentage of GDP)
Source: Eurostat (2015)
The country’s main trade partners are Uganda, Tanzania, India and China (ibid.). Kenya’s primary exports include tea, horticultural products, coffee, petroleum products, fish and cement whilst the country mainly imports machinery and transportation equipment, petroleum products, motor vehicles, iron and steel, as well as plastics (ibid.). In 2014, the country had a trade deficit of €6.4 billion and a current account balance of -11.1% GDP in 2012 (WB, 2015a). According to the WB (2013), the current account deficit leaves Kenya vulnerable to external shocks which hampers its economic performance. One possible solution is to create a better business environment and promoting foreign direct investment (FDI) (ibid.). FDI has remained relatively modest at approximately €148.6million (ibid.) with the WB (2015b) ranking Kenya at 136 out of 189 economies on its ease to do business index. In addition, Kenya is hampered by a reliance on primary goods whose prices have remained low. Consequently, Kenya still depends to a great extent on donors and international financial lenders to achieve economic development (CIA, 2015). Net official development assistance and official aid received amounted to approximately €2.37billion in 2013 (WB, 2015a).
10 Real GDP growth from 2011 to 2014 has ranged from 4.4% to 5.8% whilst average annual
population growth in this period has been 2.7%. 53.3 29.3 17.4 0 10 20 30 40 50 60
Services Agriculture Industry
Perc en ta ge o f G DP Economic Sectors
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The country’s economic progress is furthermore hampered by political corruption and the inefficiency of successive governments. For example, infrastructural investment in the country remains low despite being highlighted as a priority of the current government (Martini, 2012). The country has consistently struggled with budget deficits and a high level of public debt11 as well as a high
unemployment rate which stands at 40% (WB, 2015a). In 2012, it was estimated that 43.3% of the population live below the poverty line with the rate in rural areas being substantially higher. Social inequality furthermore remains an issue with a Gini Index score of 42.5 and the fact that the wealthiest 10% of the population hold more than 40% of household income with the poorest only holding approximately 1% (WB, 2015b).
3.1.2 Gender Inequality
Kenya has traditionally been a patriarchal society with women having less access to education and financial services than their male counterparts (Shabaya & Konadu-Agyemang, 2004) who generally dominate leadership positions within the household and the public sphere (ibid.). Women have been restricted to completing household tasks rather than being engaged in economic activities (Mulu-Mutuku et al., 2006; Orchardson-Mazrui, 2006). However, the Kenyan government is prioritising gender equality with the new constitution in 2010 as well as a host of new policies on gender underlining this intention (Glinz, 2011; SIGI, 2015). Despite these efforts, gender discrimination in Kenya is characterised by a mixed system whereby new legislation that attempts to increase equality is undermined by customary law and traditional patriarchal norms. The Social Institutions and Gender Index (SIGI) (2015) evaluates discrimination against women in the country as ‘medium’ with a score of 0.21612. Figure 4 shows how Kenya scores on the five SIGI criteria which measure different aspects
of gender inequality based on social norms, practices and laws (SIGI, 2014).
11 Public debt in 2013 amounted to 53.5% of GDP with a budget deficit of 4.1% in the same year. 12 The SIGI evaluates gender-based discrimination by giving countries a score ranging from 0 to 1.
Gender discrimination is considered very low with a score which is lower than 0.12 whereas countries with a score which is higher than 0.35 are considered to have very high levels of gender discrimination.
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Figure 4: The Social Institutions and Gender Index – Kenya 2014
Source: SIGI (2015)
The SIGI report is split up into five categories including inequality at the family level which is seen as ‘medium’. It is argued that whilst new laws such as the inheritance law and the Marriage Bill of 2013 do grant women more rights, full inequality is not achieved due to inadequate implementation and the content of such bills (ibid.). An example for this is that the Marriage Bill still grants men the right to marry multiple wives which, in turn, may be used as a way to exert power over first wives (SIGI, 2015). The issue of implementation also underlines the difference between rural and urban settings in Kenya as gender inequality is more prevalent in rural than in urban areas where traditional norms and practices are more difficult to offset through new legislation (ibid.). Areas where women still face high inequality include gender-based violence where incidences of domestic violence are often seen as a ‘family issue’ (ibid.). Whilst all forms of sexual assault are criminalised, the inadequate mechanisms that are in place often deter women from reporting such incidences. Further areas where there seems to be a high level of inequality relate to women’s access to resources, as well as the way women are valued in the household. Thus, women have less control over property and other assets which can for instance hamper their access to financial services whilst at the household level, men are more valued than their female counterparts which is reflected in the gender gap in secondary school enrolment (ibid.). The former issue of land ownership again highlights a problem of implementation whereby customary law, especially in rural areas, prevails over national legislation leading to women only making up 5% of registered landholders. Although women are often discouraged from occupying leadership roles in the community and standing for public office, the legal framework generally does not have any restrictions regarding women’s civil liberties. Indeed Glinz (2011) argues that the new constitution does improve the opportunities for women to occupy political positions by introducing a quota-like system.
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Whilst government efforts encourage women to move beyond their domestic role and engage in an economic activity, female entrepreneurship is still hampered by women’s lack of access to resources, lower enrolment rates in secondary education and prevalence of traditional norms that give primacy to men.
3.2 Political, Economic and Social Characteristics of Samia District
The primary location of the research project is Samia District, located in Busia which is which is one of the 47 counties of Kenya and one of the four counties that make up Western Province. Samia District has a total area of approximately 281.2km² (KMS, 2009) with a population of 100,322 reported in 2009.
Map 2: Samia District, Busia County
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3.2.1 Political and Economic Context
Samia District is predominantly inhabited by members of the Luhya tribe. Since Kenyatta’s rule from 1963, it has often been claimed that the predominantly Luhya and Luo Western area has been neglected by the state with areas populated by other tribes enjoying more substantial government investment (Laurien, 2010). As a result, opposition13 leader Raila Odinga enjoys the most support in
the area. However, Murunga and Nasong’o (2006) and Laurien (2010) argue that corruption goes beyond tribal division and is rather concentrated amongst elites who may differ in their tribal backgrounds. Thus, corruption, rather than tribalism, is pinpointed as the root cause of inequality and poverty in Kenya (ibid.). Nevertheless, Samia District suffers from a lack of infrastructural investment meaning that a number of areas do not have adequate transport routes. This point is illustrated by Image 1 showing a road leading towards Funyula, one of the main market towns in Samia District. Most roads are not tarmacked which hinders transportation within the area.
Image 1: Road in Funyula Town, Samia District
Source: Fieldwork Samia District, March 2015
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According to one male community leader in Samia District, corruption is not only an issue amongst urban elites but has become more of an issue in everyday life in rural Western Kenya in the last decade. It is not untypical for local politicians and district chiefs to distribute so-called handouts to their followers in exchange for sustained political support.
Samia District is one of the poorest areas of Busia County with an absolute poverty rate of 61.4% and 64% of the population experiencing food poverty14. According to Pouw et al. (2012), smallholder
farmers15 in Samia are particularly vulnerable to factors such as climatic change, lack of land, assets,
agricultural inputs and livestock, as well as population growth which threaten their livelihood by increasing their susceptibility to food and income insecurity. The main food crops grown are maize, sorghum, sweet potatoes, cassava, bananas and cow peas with the main cash crops being sugarcane, cotton, tobacco, coffee and horticultural products (KMS, 2012). Across the county, poverty has led to families being unable to pay for health services and education, a high dependency ratio, low incomes, migration, food insecurity and child labour. The county also has a high HIV/AIDS infection rate (ibid.). Unemployment in Samia stands at 71%16 with the main development challenges being population
pressure, a lack of physical infrastructure and food insecurity whilst high rates of HIV/AIDS infection, environmental degradation, gender inequality and inadequate disaster management plans furthermore hamper the area (KMS, 2009).
Development efforts in Samia District are organised under the national Vision 2030 Programme which aims to reach an average annual GDP growth rate of 10%17. 78% of the labour force is employed in
agriculture with an estimated income of ksh1.42billion18 being generated each year (KMS, 2009).
Consequently, agricultural development has been highlighted as a key area to foster ‘innovative, commercially oriented and modern agriculture and rural development sector’ (KMS 2009, p.32). Overall, deficiencies in fisheries, livestock and land use are identified as key elements to address. Ministries aim to give training to farmers and provide inputs such as vaccines, fertilisers, high-quality seeds and machinery whilst also promoting cooperatives to improve marketing in order to integrate producers into value chains (ibid.). Furthermore, the development plan underlines the need for ministries to carry out more inspections and certification procedures to improve hygienic standards and monitor the outbreak of diseases whilst also providing higher infrastructural investment such as irrigation systems and office spaces for staff (ibid.). An example of a government project under this
14 The absolute poverty rate for the whole of Kenya is 43.4% (WB, 2015a) which shows how Samia
remains a neglected area.
15 The main livelihood activities in Samia District are related to farming. 16 Compared with 40% for the whole of Kenya (WB, 2015a).
17 The annual average growth rate in Samia in 2012 was 6.1%. 18 Ksh1.42billion amounted to approximately €13.25million in 2009.
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plan is its local poultry development programme which has the objective of promoting poultry rearing as a source of income. The project includes carrying out two on-farm training seminars annually as well as 2000 vaccinations of animals per location to reduce poultry mortality from 35% to 25%.
3.2.2 Gender Inequality in Busia
Despite making up 60% of the workforce, women in Busia County encounter more economic constraints than their male counterparts (KMS, 2012). With land rights in rural areas being influenced by tradition and cultural norms (Mackenzie, 1990), women in the area have difficulties in putting up collateral to access financial services (ibid). Moreover, women in Samia occupy less leadership positions in the community and household and attend less barazas19 than men. Despite increasing
opportunities for girls to receive formal education – as seen by the rise in female enrolment in the area – the dropout rates between female (15%) and male students (8%) still differ which can be attributed to early pregnancies (ibid.). Inequality in economic opportunities is furthermore underlined by the difference in literacy rates between men (78.8%) and women (54.25%). However, government efforts to promote gender equality are steadily improving access to financial services for women with programmes such as the Women Enterprise Fund (WEF), the Youth Enterprise Fund (YEF) and the Uwezo Fund offering loans to women’s groups. Ministries are offering training to men and women alike on the benefits of female entrepreneurship to encourage women to occupy a role outside of the household. The rationale of the government for this is first of all that women make up approximately 52% of the population and thus have enormous economicpotential (KI-07).
3.3 The Centre for African Bio-Entrepreneurship and Table Banking
3.3.1 Table Banking In Kenya
Home-grown credit schemes and the setting up of community groups is widespread in rural Kenya (Dupas & Robinsion, 2009; Dupas et al., 2012; Gugerty, 2007). A common type is the merry-go-round (MGR) where members contribute a set amount of money to a fund at each meeting. The entire fund is then given to a different member each week to take home and use. The cycle continues until each member has received the ‘pot’ once. Image 2 shows a women’s group practicing MGR with presents in the form of household items as opposed to financial contributions.
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Image 2: Women’s Group’s Merry-go-round in Samia District
Source: Fieldwork Samia District, March 2015
TB is a specific form of rural credit whereby members contribute shares to a group fund at each meeting. However, rather than giving the entire fund to one member, individual loans are distributed that have to be repaid after a certain period of time with an interest rate. The distinction to the MGR is that TB allows groups to build up their capital base and gradually give out larger loans to members resulting from the shares and interest payments that are contributed. Joyful Women Organisation (JoyWo) was the first TB organisation to be set up in Kenya and was established by the deputy president’s wife Rachel Ruto in 2009 (Masava & Isiye, 2013). In contrast to more commercialised microfinance institutions in Kenya, TB groups typically offer loans with low interest rates20 and often
rely on social collateral in the form of peer pressure and group solidarity where the entire group is liable for a member defaulting (Hermes, Lensink & Mehrteab, 2005; Paxton, Graham & Thraen, 2000).
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3.3.2 The Centre for African Bio-Entrepreneurship
CABE was set up in 2003 with the aim of ‘improving the wellbeing of smallholder farmers and youth in agri-foods’ (CABE, 2014). The organisation is based in Nairobi and mainly implements its projects in Western Province. CABE focuses on improving the region’s food and income security by building the capacities of smallholders to initiate sustainable IGAs (ibid.). CABE began supporting the setting up of TB groups in May 2011 and follows a hybrid model whereby groups largely rely on their own financial resources but may also receive top-up loans. Whilst the initiative began with four groups, CABE is now affiliated with 12 TB groups. Besides facilitating the setting up of groups and providing top-up loans, CABE also offers trainings to members. The initial seminars focus on introducing the concept of TB to groups and providing skills such as record keeping. Here, groups are instructed on how to save and distribute financial resources whilst they are also supported in the drafting of bylaws that include the group’s set procedures and regulations. Subsequent sessions target members’ financial literacy by focusing on how to run a business whilst participants may also be exposed to new IGAs such as poultry rearing.
3.4 Conclusion
In this chapter it is argued that the unfavourable economic and climatic conditions leave a large part of the Samian population unable to lift themselves out of poverty. This is exacerbated by government neglect which translates into underfunded ministries and a lack of infrastructural investment. Despite government efforts to combat gender inequality, women are disadvantaged by patriarchal structures of society which discourage female economic activity. In this regard, TB may be seen as a way to strengthen the capability of women to improve their livelihoods. Despite the main goal of TB in Samia District being the promotion of entrepreneurship, CABE has recently begun to offer more diversified products such as insurance funds and mechanisms for members to save for school fees. Whilst offering such products may prevent members from using regular group funds for social purposes, there still remains the question of whether TB in Samia is viewed as a mechanism to foster entrepreneurship or whether it rather serves social needs and offers support for when members experience shocks.
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Chapter 4 – Methodology
The thesis project examines the link between table banking and the livelihood outcomes of female small-scale entrepreneurs in Samia District whilst also seeing how unequal gender relations play into this relationship. The main research question is thus formulated as follows:
‘How do Kenyan Table Banking activities enhance female entrepreneurship, and how do they affect gender relations in the household?’
This chapter gives an overview of the data collection methods and analysis techniques that are used whilst also discussing the overall research design. In this regard, the main limitations and ethical considerations are also discussed. Section 4.1 presents the sub-questions and main units of analysis which precedes a discussion into the main epistemological assumptions in 4.2. Sections 4.3 and 4.4 then discuss the data collection and analysis techniques that are employed with the final parts (4.5 and 4.6) summarising the ethical considerations and overall composition of the methodology.
4.1 Research Questions and Units of Analysis
4.1.1 Research Questions
To answer the main research question, three sub-question have been formulated. Chapter 5 discusses the context of Samia District and investigates how this affects the ability of women to practice entrepreneurship. The first sub-question is therefore the following:
‘What are the main obstacles faced by female small-scale entrepreneurs in Samia District in their economic activities?’
The second empirical chapter looks into the relationships between table banking and the capital endowment of female entrepreneurs.
‘How does table banking improve female members’ endowment of financial, human and social capital, and how does their capital endowment affect income-earning opportunities?’
The final sub-question is dealt with in Chapter 7 and looks at the link between household relations and table banking.
‘How do household relations affect female entrepreneurship, and how does table banking influence this relationship?’
