Credit plus microcredit schemes: a key to women's adaptive capacity

Abstract

This paper presents the provision of “credit plus” training activities, conditionally and jointly with microloans by Equity Bank and by Swedish non-governmental organization Vi-Skogen in the area of Kisumu, Kenya to women's groups as a key to improving women's capacity to adapt to climate change. Groups received training in small business administration and agroforestry, which produced positive outcomes or a virtuous spiral in their families' economy, well-being and in their intra-household bargaining power. In agroforestry and new farming practices, group training enhanced the women's set of planned adaptation strategies. In a context where formal financial institutions are still reluctant to provide credit to subsistence farmers, this case study shows the beneficial effects that credit would generate for women's adaptive capacity.