How Forum Kenya Conducts Revolving Loan Funds

Forum Kenya is committed to empowering women in Kenya by providing access to financial resources through revolving loan funds. This approach has helped many women entrepreneurs start and expand their businesses, generating income and creating jobs within their communities.
In this blog post, we will discuss how Forum Kenya conducts its revolving loan funds and how this approach has made a difference in the lives of women entrepreneurs in Kenya.

What is a Revolving Loan Fund?

A revolving loan fund is a pool of money that is continually replenished as loans are repaid. This type of funding model is often used to provide small loans to individuals or businesses that lack access to traditional financial services, such as banks or other financial institutions.
Revolving loan funds operate on the principle of recycling money: when a borrower repays a loan, the money is returned to the pool of funds and made available to other borrowers.

How Forum Kenya Conducts Revolving Loan Funds

Forum Kenya conducts revolving loan funds through its community-based approach, which involves working closely with local communities to identify their needs and develop sustainable solutions. The organization provides technical assistance to community-based organizations (CBOs) that support self-help groups (SHGs) in developing their businesses.
Through these partnerships, Forum Kenya provides loans to SHGs through revolving loan funds. The SHGs then use the loans to start or expand their businesses. The money is repaid through interest payments over time, allowing other members of the same group access to the funds when they need funding as well.

The Impact of Revolving Loan Funds on Women Entrepreneurs

Revolving loan funds have had a significant impact on the lives of women entrepreneurs in Kenya. By providing access to capital, women entrepreneurs have been able to start and expand their businesses, generating income and creating jobs in their communities.
In addition, revolving loan funds have helped women entrepreneurs build the capacity they need to manage their businesses more effectively and sustainably. This has led to improved living standards for women entrepreneurs and their families, as well as increased economic activity in communities.

Conclusion

Forum Kenya is committed to empowering women in Kenya through its community-based approach, which includes revolving loan funds. By providing access to financial resources, training, and mentorship, Forum Kenya is helping women entrepreneurs build sustainable businesses that generate income and create jobs in their communities.
The impact of revolving loan funds on women entrepreneurs has been significant, and Forum Kenya will continue to work towards providing access to capital and financial services to women entrepreneurs in Kenya.