Abstract:
omen encounter greater limitations and fewer opportunities than men, especially with regard to income-
generating activities. They face social and economic constraints that perpetuate poverty and spans generations.
Significant opportunities exist in both formal and informal sector that can empower women economically.
Emergence of microfinance institutions has had a great impact as an apt method of increasing delivery of formal
rural credit and savings facilities on sustainable and non-exploitative terms albeit of financial imprudence
stemming from poor credit repayment records. There is however, a paucity of empirical research on social
economic factors that affect loan repayment behavior of women in Kakamega north district. Main objective of this
study was to contribute to this domain by conducting an in-depth analysis of the socio-economic factors. The
theoretical basis of this study borrows heavily from the self efficacy theory. The study employed descriptive design
for primary data collection on variables contributing to the loan repayment behavior. A Sample (236) respondents
representing 30% of the targeted population of 793 KWFT women loan borrowers spread among 13 locations of
Kakamega North District was selected by stratified and random sampling techniques. Primary data was collected
by use of structured and semi-structured questionnaire and interview schedule. Observations were carried out
where necessary. A binary logistic regression empirical model was employed to estimate the contribution of each
variable to credit repayment rate. The study findings reveal that there is a significant relationship between socio-
economic factors and loan repayment behavior by women loan borrowers. The study recommends paradigm shift
in the micro-credit management model to allow more direct involvement by micro-finance firms in the
management of disbursed funds.
