You could be thinking of starting a business and have less capital or are clueless on where to find money. Or, you wondering where you will borrow a loan to start your business. With abnormal rates of unemployment in Kenya, youths are on the receiving end, feeling pinch of joblessness. Even for the business-minded, the challenge is getting money to actualize their ideas. However, all is not lost. At least, institutions have come up to support start-ups financially. Here are institutions offering business funding in Kenya.
- M-shwari from Safaricom
M-shwari, a product of Safaricom, has over 2million subscribers. M-shwari allows subscribers to access loans of a minimum of Ksh.100 instantly via their M-PESA accounts. Launched in 2012 through a strategic partnership with commercial bank of Africa CBA M-shwari has taken the market by storm with more than 7000 borrowers accessing personal loans.
- Vision fund Kenya
Established by World Vision Kenya in 2000, Vision Fund Kenya provides credit and economic empowerment through business support in remote areas. With its 54 offices in Kenya, the institution operates as a non-regulated microfinance institution. The group operates through field officers who source borrowers by listening to their entrepreneurial stories. Field officers then help people to forms groups that are funded after training. Their products include business loans, consumer loans, general agric –loan and non-financial services. Located along Karen road, Ngong’ in Nairobi, the institution offers loan rating from 10K at an interest of 10 percent for a period of 6 months. It only takes 8 days to prepare the first loan.
- Uwezo Youth Fund
Launched in 2013 by President Uhuru Kenyatta, Uwezo Youth Fund is a government project that aims at empowering youth through business financing. It also avails capital for business enterprises through grants and credit for the youths and women in all counties. To access Uwezo fund loan you need to sign up for capacity building program or form a group of at least 5 members and register it with the ministry of youths.
- Freyr International Limited.
Freyr International Limited is microfinance, based in Nairobi, Kenya. Established in 2011, the organisation offers auto logbook and small short-term loans. Located at Hazina Towers, the institution also arranges financing for other loan products with their partners such as Real estate loans, invoice discounting, LPOs, and Cheque discounting. Small Short Term Loans range from Ksh. 10,000 – 50,000 payable within a month or two. A post-dated cheque is required for the borrower and guarantor. Auto logbook Loans are secured using motor vehicle logbook and the amount range from Ksh. 50,000 to 1,000,000.
- World Bank Kenya
The World Bank helps to eradicate poverty in Kenya through empowerment programs. Through such programs, local communities get training on how to change their lives and become independent. Through the Ministry Of Devolution and Special Programs, the World Bank uses field officers who train and help locals form groups. These groups get funding to start a merry go round that provides funding to its members. The programs operate in Central and western Kenya.
- Faulu DTB Bank
With its interest as small as 9.2 percent, Faulu DTB Bank provides business loans to small microfinance enterprises. The bank was founded in 1991 by Food for the Hungry International (FHI). This is a Christian relief organization, with a bank scheme to empower residents of Mathare slums in Nairobi to eradicate poverty. It is among the top deposit and take banks in Kenya, and offers loans through its 20 branches all over the country.
- Kenya Women Microfinance Bank Limited (KWFT)
This is a microfinance institution (MFI) targeting almost exclusively women. Established in 1993, the institution serves women from remote and poor areas. KWFT is Kenya’s number one micro financing institution that targets, small micro entrepreneur who venture in small shop businesses and animal rearing business. It has the largest MFI borrowers and loan portfolio of over 200billion. KWFT also offers group based loan to its clients who get a loan of Ksh.10, 000 at the beginning. The limit differs as per the individual’s shares.
- Industrial Development Bank (IDB)
IDB is a Government-funded institution. It provides medium and long-term loan finance, direct equity investment and guarantees for loans from other sources. It also underwrites security issues, shares, stocks and similar obligations. IDB now offers full banking services. Here, the borrower needs to prove the payment by paying 20 percent of the project being funded. Kenyan government established it in 1973.
- Development Bank of Kenya (DBK)
Since its establishment in 1963, DBK has been offering financial services for medium and long-term finance for entrepreneurs. It targets people who wish venture in industrial, agro processing and ecotourism sector. It is jointly owned by Kenyan government through ICDC, the Netherlands Overseas Finance Company (FMO), Commonwealth Development Corporation (CDC), the German Development Bank (DEG) and the International Finance Corporation (IFC).
- African Banking Corporation
With its interest charges ranging at 14.63, the African Banking Corporation is among financial institutions that help Kenyans financially. Established in 1985, the institution has ten branches in Kenya. Its services include funding micro financing and saving services.
By Catherine Akuku
