Cultural Barriers Prevent Karamoja Women from Accessing GROW Loans  

By Richard Onapatum  
Kotido, Uganda – May 2025  

In the dry plains of Karamoja, where women form the backbone of agriculture and entrepreneurship, a silent struggle persists—financial exclusion driven by cultural traditions. Despite their pivotal role in the economy, many women cannot access GROW loans due to restrictive collateral requirements that demand land titles, a requirement most Karamoja women cannot meet due to historical land tenure systems.  

While men traditionally own land, women cultivate it, manage businesses, and drive local economies. Yet when they seek financial support to scale their farms or enterprises, the system shuts them out. This inequality has ignited a wave of advocacy from female leaders, policymakers, and local business owners who insist that loan policies must adapt to the realities of Karamoja’s land customs or risk leaving half the population behind.  

Women’s Voices: The Reality of Financial Exclusion  

Lilly Grace Nachan, Chairperson of the Kotido Women’s Farmers Forum, argues that the land title requirement locks out most women from accessing loans, despite their willingness to commercialize agriculture and business.  

“We are ready to expand farming and enterprises, but without financial support, we remain trapped in small-scale operations,” Nachan states.  

Special Presidential Assistant (SPA) Angolere Caro reinforced the government’s commitment to addressing financial exclusion, stressing the need for adaptive banking policies that match the realities of Karamoja women.  

“We must ensure financial institutions adjust their policies to accommodate women’s realities,” Angolere explained. “Women need alternative solutions, such as cooperative-backed loans and government-supported financial programs.”  

Historical Context: Karamoja’s Land Tenure System  

For decades, Karamoja’s communal land system has been controlled by male elders and clan heads, leaving women dependent on family structures for access to farmland or business space. Even after Parliament degazetted portions of land initially designated for conservation in 2002, most women still lack legal land ownership, making it impossible to qualify for traditional loans.  

How Women Are Creating Financial Solutions  

Despite systemic obstacles, women-led farming cooperatives and business groups in Kotido and across Karamoja have developed alternative financial models to support female entrepreneurs.  

Community savings groups, where women pool resources and provide local loans without land title requirements  
Cooperative-backed financing, enabling women to secure group-based loans using shared assets instead of personal collateral  
Policy advocacy, pushing financial institutions to recognize farm equipment, livestock, or business stock as acceptable collateral for investment  

Teko Nuria, the Kotido District Vice Chairperson, emphasized that adjusting banking policies is essential for women’s economic empowerment.  

“Women are the backbone of agriculture and business in Karamoja, yet they are denied financial resources simply because of outdated land ownership customs,” Nuria said. “If banks and government agencies do not adjust their policies, we will continue seeing women trapped in poverty despite their hard work.”  

Denied a Loan Over Land Ownership Rules  

Ajok, a 38-year-old farmer and entrepreneur in Kotido, applied for a GROW loan to expand her maize farm and retail business. Despite having a thriving farming operation, she was denied funding because she lacked a land title.  

“I have farmed for years, but because the land belongs to my husband’s family, I cannot use it as collateral,” Ajok explained. “Without financial support, I cannot buy better seeds, irrigation equipment, or stock for my shop.”  

Her case is not unique—many women entrepreneurs remain trapped in subsistence farming or small-scale businesses, despite their economic potential.  

Government Response and Steps Toward Change  

Following the women’s appeal, Dr. Emmanuel Aliba Kiiza, Chairperson of the Microfinance Support Center, directed financial officials to develop solutions that allow women in Karamoja to access GROW funding without land titles.  

Additionally, the Ugandan cabinet reduced interest rates for women borrowers in Karamoja, Busoga, and Bukedi as part of an affirmative action strategy to boost female entrepreneurship.  

National Statistics on Women’s Financial Inclusion  

According to the FinScope Uganda 2018 report, 57 percent of women rely on informal lenders, while only 24 percent have access to formal financial services. The gender gap in financial inclusion remains significant, especially in rural areas like Karamoja, where land ownership restrictions further limit women’s access to credit.  

What Banks and Policymakers Must Do  

Experts recommend the following best practices to improve financial inclusion for rural women:  

Flexible collateral options, allowing farm equipment, livestock, or business inventory to serve as guarantees for bank loans  
Government-backed credit programs, ensuring banks support women’s agribusiness and business investments without requiring land titles  
Strengthening women-led financial cooperatives, scaling their ability to provide alternative loans outside of traditional banking institutions  

Conclusion: A Call for Policy Reforms  

While these measures show progress, Karamoja’s women entrepreneurs continue to demand urgent policy reforms that ensure true financial inclusion. Their message is clear—banks and government must adapt lending structures to match the realities of Karamoja’s land tenure system and business landscape.  

With cooperative-backed loans, policy advocacy, and government intervention, women in Karamoja are reshaping their financial future, proving that economic empowerment is possible—even in the face of cultural barriers.