Abstract:
Women entrepreneurs play an important role in the economic development of the Country. The
research focused on the Women Entrepreneurs who belong to groups seeking for financial
access. According to Central Bank of Kenya report of 2010 the default rate experienced by
financial institutions had continued increasing and stood at 8%. Thus the study main objective
was to establish the factors affecting loan repayment by women entrepreneurs. The research
model developed predicted that marketing knowledge, training, group membership and financial
availability affected loan repayment. Stratified random sampling as a sampling method was
used by the research after having established the sampling frame of women groups accessing
funds from financial institutions in Kisii town, Kenya. The researcher made use of a structured
questionnaire that was administered to the target respondents The study established that loan
repayment by women entrepreneurs is affected to a high level through adherence of members
to group by- laws and regulations. The study found that that carrying out the business for a long
period enables them to be in a position to repay the loans acquired without any difficult. The
study recommends that the microfinance institutions management should have an effective loan
management plan
