Africa (Commonwealth Union) _ In the city of Mombasa, Mary Akinyi, an intersex woman, found herself borrowing money from a loan shark after being rejected for bank credit due to her gender identity not matching her ID card. This situation is not unique, as many LGBTQ+ entrepreneurs in Kenya face similar challenges. Trans and intersex individuals often resort to informal lenders charging high interest rates after being denied credit by formal financial institutions. The rejection is often attributed to reasons like mismatched gender identities on ID cards or the LGBTQ+ status of the loan guarantors.
The experience of entrepreneurs like Akinyi highlights the financial challenges faced by the LGBTQ+ community in Kenya. In addition to economic exclusion, LGBTQ+ individuals encounter discrimination in various forms, hindering their access to credit and economic opportunities. The rejection of loan applications based on gender identity or sexual orientation perpetuates a cycle of financial hardship for LGBTQ+ entrepreneurs.
Despite Kenya being considered a relatively accepting environment for LGBTQ+ individuals in the region, discrimination persists, impacting the economy. Open for Business estimates that LGBTQ+ discrimination costs Kenya a significant amount, ranging from 18 billion shillings ($128 million) to 130 billion shillings, equivalent to 0.2% to 1.7% of its GDP. This underscores the need for policies that prohibit discrimination based on sexual orientation and tailored financial support to promote economic inclusion for LGBTQ+ individuals.
While the government asserts that LGBTQ+ women are eligible for existing programs supporting female-led businesses, the challenges persist, and loan sharks become the only alternative for some. The economic burden of repaying informal loans at high interest rates poses a significant challenge for LGBTQ+ entrepreneurs striving to expand their businesses. Advocates emphasize the importance of enacting policies that address discrimination and provide financial support to empower LGBTQ+ individuals and contribute to the nation’s economic growth.
