Musa (1999) observed that small-scale entrepreneurs in Sabatia constituency of
Vihiga district had been unable to use the credit facility known as the Sabatia
Constituency Development Fund (SACODEF). The micro-credit facility was to offer
low-interest credit services to women and youth groups involved in income-generating
activities at the grass roots level. Musa (1999) reported that target clients had a natural
fear for loans because experience had taught residents that defaulting on bank loans
costs one dearly as many who had defaulted before lost their pieces of land, mortgaged
as security for loans. For SACODEF, the fear was unfounded since no title deed was
needed as security to secure credit. Musa (1999) blamed lack of awareness in the local
community as the main cause of the fear for loans. In this study, the question of fear for
loans by Women Groups was examined and recommendation made.