5 Small Business Loans in Kenya: Funding Options for Entrepreneurs


5 Small Business Loans in Kenya: Funding Options for Entrepreneurs


5 Small Business Loans in Kenya: Funding Options for Entrepreneurs


5 Small Business Loans in Kenya: Funding Options for Entrepreneurs


The recent economic data shows that the number of Small and Medium Sized Enterprises (SMEs) in Kenya is rising. Many young people are coming up with innovative ways and ideas for starting small businesses, but they all face the challenge of securing funds to start their businesses.

Today, we will discuss some of the institutions that provide loans for SMEs in Kenya.

Loans For SMEs and Start-Ups in Kenya

Funding for small businesses in Kenya has become a bit easier with the availability of several loan options. However, when it comes to taking a loan, one must consider key factors, such as the loan interest rates and the type of securities.

Taking loans with high-interest rates may negatively impact your small business. Negotiating loans that come with low-interest rates and a longer repayment period should be in your best interest. Below are some of the options to consider:

Disclaimer: This post is not affiliated with any of the financial institutions mentioned below.

National Bank SME Business Loan

The National Bank of Kenya has established a loan for SMEs to aid their long-term success. Both secured and unsecured, the loan provides business owners with the necessary means of financing their enterprise aspirations. Moreover, borrowers have the advantage of enjoying a flexible repayment period that best meets their individual needs.

National Bank SME Business Loan Features

  • Attractive loan limits of up to KES 3M without collateral.
  • Flexible repayment period of up to 12 months.
  • Interest rate – 13% per annum.
  • Negotiation fee – 3%.

KCB (Boresha Biashara) Business Loan

KCB Business Loans are the perfect avenue to fund SMEs while they get their footing in the industry.

With multiple loan packages that come with low-interest rates and negotiable repayment periods, it is no wonder why this loan service is one of the most sought-after by budding entrepreneurs in East Africa.

The bank also assists Agri-business ventures to secure a robust livelihood for individuals involved in the agricultural business.

KCB Biashara Loan Features

  • Flexible loan limits of up to KES 1M.
  • Repayment period of up to 32 months.
  • Eligibility of topping up to an existing loan.
  • Interest rate 13% per annum.
  • Negotiation fee – 3%.
  • Insurance fee – 0.85%.

Other KCB Business Loans

  • Bodaboda/ Tuktuk Loan.
  • Jaza Duka.
  • Soko/ Market Loan.
  • Retailer Finance.
  • Boresha Plus.

Absa Business Loans

Absa Bank offers unmatched unsecured and secured business loan products that can meet the needs of small and large businesses.

Its wide range of products includes LPO financing, invoice discounting and bid bonds.

Loan amounts range from 100,000 KES to up to 50M for some products. Interest rates are either fixed or variable, making them more flexible for different borrowers.

To partake in this offer, your business must have been operating for at least 3 years with valid documents confirming its operations as part of the loan requirements.

HF Group SME Business Loans

The Housing Finance Group is another financial institution that provides secured and unsecured loans to startups and SMEs.

The institution offers both secured and unsecured business loans.

HF Group Unsecured loan features

  • Offered to business with good performance.
  • No collateral is required.
  • The loan can be offered to landlords without title deeds.
  • Loan limits from KES 100,000 to 1M.
  • Repayment period of up to 12 months.
  • Competitive interest rates and a quick processing time.

HF Group Secured loan features

  • Loan limits up to KES 50M.
  • Collateral is required (Title deeds, log books, listed stocks at NSE, life insurance policies or cash).
  • Working capital loans are available for up to 36 months.

The Cooperative Bank MSME Term Loans

The Coop bank is another financial institution on the list supporting small businesses. The bank offers MSME Term Loans for businesses looking to increase their working capital and deliver better services.

Cooperative Bank MSME Term Loans Features

  • Minimum Loan limits of KES 600,000.
  • Interest Rate – 13 % P.A
  • The repayment period is between 24 – 60 months, depending on the type of loan.

Other Coop Bank Business Loans

  • Asset Finance – Business
  • Mkopo wa Kujengana – Business
  • Msamaria Women’s Loan
  • Supply Chain Financing
  • Import Duty Finance
  • Overdrafts
  • MSME Overdraft Working Capital
  • Business Mortgage and Construction Loans

Final thoughts

Funding can be a significant hurdle if you’re an entrepreneur in Kenya looking to grow your small business. Fortunately, there are several small business loan options available that can help you achieve your goals.

We hope this article sheds more light on where to start your funding journey. Let us know in the comments section if you have any other place in mind.

Good luck!

Note: This article is intended for educational purposes only and does not constitute financial advice in any form. Please consult a qualified financial advisor before taking out any loan or making major financial decisions.

Daniel Joakim
Daniel Joakim
Daniel Joakim is a content and technical writer. He translates technical jargon into simple statements that make sense so people can easily understand their finances and start taking control of their futures. Get in touch on Twitter @joakimdanie or LinkedIn.

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