innovations as a result of their limited funds. Data from<sup>several areas in</sup> Kenya show that over half the women reported lack of cash as the<sup>matn reason why</sup> they could not purchase fertilizer and improved seeds (World<sup>3ank, 1989).</sup> Women's ability to undertake viable economic activities is also<sup>hampered by lack</sup> of credit.

In Kenya, women's access to credit is quite limited, particularly from formal sources of credit such as banks, specialized crop programs<sup>and other</sup> financial institutions. It is estimated that rural women borrowers<sup>represent</sup> no more than 10 percent of all loanees (World Bank, 1989). Although there are no laws prohibiting women from borrowing from formal institutions,<sup>few women</sup> have had access to these sources of credit. The Agricultural Finance Corporation (AFC) is a major source of lending to ttL3 agricultural sector. These credit facilities have been available primarily to large and medium scale farmers who are considered to be less risky and therefore to entail<sup>lower</sup> administrative costs on the part of the financial institution. The AFC<sup>also</sup> requires title deed or other forms of collateral, a resource that few rural women have (African Development and Economic Consultants, Ltd.,<sup>1986; World</sup> Bank, 1989).

Other formal sources of credit such as the Cooperative Bank of Kenya and specialized crop programs run by the National Irrigation Board<sup>or the Kenya</sup> Tea Development Authority also offer little scope for women borrowers (World Bank, 1989). Some women may receive credit indirectly through their<sup>husbands.</sup> This was the case under the Cooperative Production Credit Scheme where, although credit was given in men's names, over 60 percent of the savings accounts<sup>were</sup> joint accounts for husbands and wives (Safilios, 1986).<sup>Other studies have</sup> shown that male farmers would allow their wives to seek credit if<sup>family</sup> property was not used as collateral, in effect eliminating women's ability to get credit through formal channels for whom this is generally<sup>a requirement</sup> (World Bank, 1989). Formal credit institutions often have other requirements including application, accounting and reporting procedures that also deter the majority of women borrowers who may not have experience with<sup>such procedures.</sup> Women's lag in education and literacy compounds their difficulties<sup>in dealing</sup> with formal financial institutions.

A fairly recent development for improving women's access to credit is the establishment of the Kenya Women Finance Trust, a non-profit organization aimed -at providing technical assistance, training and loans<sup>to women</sup> entrepreneurs and groups. At present, the emphasis is primarily<sup>on lending to</sup> women in urban areas.

Most rural women get their credit from informal sources such<sup>as</sup> money lenders, suppliers, friends, relatives and women's groups<sup>funds. Although</sup> there are definite advantages for women of informal credit sources<sup>such as the</sup> lack of collateral requirements and the ease of transaction,<sup>there are also</sup> significant drawbacks. Money lenders charge high rates of interest,<sup>and these</sup> funds in general may be limited to only certain endeavors<sup>and/or be limited by</sup> the lender's own financial capacity (African Development<sup>and Economic</sup> Consultants, Ltd., 1986; World Bank, 1989).

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