authors
Arvinlucy Onditi and Frankline Otiende Awuor

abstract
Access to finance remain a major obstacle for entrepreneurs in developing countries particularly those in informal food businesses. Globally, SMEs face significant financial gap, pushing many to adopt alternative innovative financial models (IFMS) in the food system. These include Community currency (Bangladesh money), Merry-go-rounds, chamas and table banking. In Kisumu, IFMs play a crucial role they offer accessible and inclusive financial options, helping to foster local economic resilience. The study adopted descriptive research design. Primary data was collected using structured questionnaires, interview and observation while secondary data was collected from the financial records. Simple random sampling was applied to select a sample size of 400 groups. Data was analyzed using mean, frequencies and thematic analysis. Findings indicated IFMs among women who operates informal business along the food value chain is driven by barriers to formal financial services including lack of collateral, limited financial infrastructure, and lack of financial records. Members face challenges such as irregular members’ contributions, restricted access to large-scale funding from the financial institutions, regulatory gaps and vulnerability to economic shock. The study recommends that to strengthen these systems, there is need to enhance financial literacy, formalizing informal finance groups, adopting risk management practices, and integrating digital tools.