Entrepreneurial Capacity Building as a Microcredit Driver and its Influence on the Empowerment of Women Entrepreneurs in Nairobi County

Purpose: This study examines the influence of entrepreneurial capacity building on the empowerment of women entrepreneurs participating in microcredit programs in Nairobi County, Kenya. Grounded in the Grameen Model, the study addresses the gap in understanding how capacity building interventions, beyond financial access, affect women’s economic agency. Methodology: A cross-sectional survey design with a quantitative approach was employed. The target population comprised 921 licensed women entrepreneurs operating within 12 rental markets in Nairobi County. Using systematic sampling, 279 respondents were selected. Primary data was collected through structured questionnaires. Descriptive statistics (frequencies, percentages, means, and standard deviations) and linear regression analysis were used to analyze the data and test the study hypotheses. Findings: Results revealed a positive and statistically significant relationship between entrepreneurial capacity building and women’s empowerment (β = 0.453, p = .000). Capacity building interventions, including business skills training, financial literacy, peer learning and mentorship, were found to enhance the economic agency and decision-making power of women entrepreneurs. Unique Contribution to Theory, Practice and Policy: The study recommends that microcredit institutions, development partners and government agencies integrate structured, consistent and context-specific capacity building interventions into microfinance programs. Such collaborative efforts can strengthen the transformative potential of microcredit in advancing women’s empowerment.