This article is for you who is looking for business funding in Kenya. We will discuss some of the top 10 institutions that can offer you the financing to grow your business in Kenya.
Business funding is the ultimate way to grow that Startup that you have been toiling to build day and night. Therefore, if you would like to know how to go about getting funding from these institutions join me as we identify the best funding organizations offering financial help in Kenya.
Business funding institutions in Kenya
Here are some of the leading institutions offering funding for businesses in Kenya.
1. Financial Foundations
There are plenty of companies and organizations in Kenya that are willing to provide funding to individuals who have a plan to advance human potential through business. On top of providing financial support, some of these foundations provide training to ensure that once they hand you funding, you will be able to manage everything well. Some of these foundations include:
- Safaricom foundation – This foundation is all about creating small and medium enterprises that will create jobs in the society. To qualify to receive funding from the Safaricom foundation, your business should be focusing on education, health as well as economic empowerment.
- Tony Emulu Foundation – It is a foundation by a Nigerian philanthropist. This funding is open to entrepreneurs with innovative business ideas and who have been in operation for more than three years. At the moment, applications are ongoing through TEFConnect. Please follow this link to apply.
- Ford Foundation – The ford foundation is another organization that is dedicated to growing businesses in Africa to solve social injustices. Take, for instance, that at the moment, they have a grant of close to $200 million to support social justice institutions.
- The CocaCola Foundation is another organization offering business grants and funding to Startups and small businesses in Kenya. To apply for financing from the CocaCola foundation, please use this link.
2. Industrial and Commercial development corporation (ICDC)
This is another institution in Kenya offering financial support to institutions in Kenya. It has over 6o years in the industry, and as a result, it is a perfect partner. This corporation has various products to suit future individuals in need of Financial support. For instance, it has a joint venture, quasi-equity, and strategic partnership services offering up to 10m for 35% equity. The ICDC is among the top 10 best institutions in Kenya offering business funding.
A venture capitalist is made up of a group of loaded financiers who have the money to invest in your business idea, as long as they are convinced it will bring good returns. For the money awarded to you, the venture capitalist often gets a share of the equity. KCB Lion’s den is one of those venture capitalist arrangements where you get to pitch your idea to a group of investors. Others might include Nairobi garage, growth hub as well as Seed capital investment. However, if you need more details, please refer to this article on the list of venture capital firms in Kenya.
4. Women Enterprise Fund
This fund is all about empowering women in our country. It offers loans, market linkage, as well as capacity building to women all over the country. The only difference between this fund and the other funds is that it does not provide funds for equity but rather gives loans. The good news is that the loans they offer are at a meagre rate. The women enterprise fund is also found in all counties in the country. As a result, it is very accessible to everyone. It is one of the top 10 Institutions that offer business funding in Kenya
5. IDB Capital Limited
This is another government institution providing help to small and medium-sized enterprises in Kenya. According to its mandate, you will be provided capital as long as you can provide a solid business plan. Some of the other products offered apart from capital financing include asset financing, credit line, as well as product financing. Therefore if you are stuck, visit IDB one of these top funding institutions for businesses in Kenya.
6. Angel Network
Angel network type of funding is provided by individuals who have an interest in your industry. This is like the oldest form of business financing. On the smallest scale, it could be you talking to your wealthy friend and convincing him or her why she needs to invest in your business. When she does this, she becomes your angel investor. However, at the moment, there is a network of individuals who could find and pitch your idea, and they will invest. Most of the Angel investors will offer you training and even might be involved in the running of the business at times.
7. Uwezo fund
Uwezo fund is another government funding program for Youth, women, and persons with disabilities. This fund is to help individuals be able to access gainful self-employment by providing funding to individuals. You need to be in a group to access these funds. Therefore, if you feel like the Uwezo fund is more viable to you, bring together a group of your friends and come up with a viable business idea that can be sponsored.
8. Microfinance lenders
Over the past few years, we have experienced an influx of microfinance lending institutions sprouting everywhere in the country. Most of these institutions have a strict condition that you have to deposit first and then you will be lent. Some of these institutions include; Caritas, Bimas, Unitas, among others. They will give you loans at a rate lower than the banks, and therefore you are assured of getting value for money.
9. Youth Enterprise development fund
Yet another fund set aside by the government to help grow and develop youth entrepreneurs in the country. It ranks highly among the top 10 Institutions that offer business funding in Kenya to youths. One of its main objectives is to provide loans to enterprises run by Youth. Therefore if you are a youth in Kenya who would like to employ other Youth, then this is the place to go to get funding. More to offering to finance, this fund also provides learning opportunities to ensure that as you get the funds, you are all set to succeed. Youth Enterprise development fund.
Crowdfunding is like a marketplace for investors. It involves getting funds from various people who believe in your project. This usually happens in an existing platform that already has investors. One of the most common crowdfunding platforms in Kenya is Mchanga. Other platforms include; Start something good from Australia, Crowd Invest and one per cent club.