Business startup loans in Kenya – Meaning and how to apply

Business Startup loans in Kenya are affordable and accessible. You have been thinking of starting up a business and you don’t have the cash to fund it, think no more. This article is for you. Kenya has different modes and channels a borrower can source for funds to start up a business.

In addition, as a startup, taking up a loan is one thing, repaying is another. Go for loans you can wisely utilize and repay within a short while and have your business still moving.

We will take you through business startup loans in Kenya and how to access them.

What are business startup loans

Business startup loans are loans made available by different financial institutions and private lenders in Kenya for the purpose of funding a business.

The borrower qualifies, applies and then gets approved and has the loan for the sole purpose of starting up a business.

What you need to know about business start-up loans

There are things you need to know about business startup loans. They are:

  1. Quick loan application procedure
  2. Easier to qualify
  3. Easier to meet up with the requirements
  4. Transparency and honesty of lenders in revealing extra hidden fees.

How to apply for business startup loans in Kenya

To apply for a business startup loans, follow the procedure:

  1. Avail yourself, study and compare lenders
  2. Visit the financial institution or lender’s website
  3. Find out the eligibility and requirements
  4. Know the documents to submit and get them ready
  5. Fill the application form either online or offline
  6. Visit the lenders branch and submit the application
  7. Attach your documents
  8. Wait for approval and loan disbursement

Ways of accessing business startup loans

There three basic ways of accessing business startup loans in Kenya. They are:

  1. Mobile lending
  2. Micro lenders and Credit union
  3. banks

Mobile lending business startup loans in Kenya

There are different mobile lenders offering loans to business startups in Kenya. They as follows:

  1. M-shawari
  2. Tala
  3. Branch
  4. KCB M-pesa
  5. Grofin
  6. Equitel
  7. Kopa Chapaa

Micro lenders and Credit union for business startup loans in Kenya

Micro lenders and Credit unions also give out business startup loans. They include:

  1. M-co-op cash
  2. Bitband- peer-to-peer lending
  3. Kiva- Peer to peer lending

Banks for business startup loans in Kenya

Banks for business startup loans are:

  1. Equity groups
  2. Chase banks
  3. Family bank
  4. Kenya commercial banks
  5. Standard chartered banks
  6. Barclays banks
  7. Prime bank

Credit score for a business startup loans

Generally, you need 680 and above for banks to give you a business startup loan. But you will still find lenders that will give you a short-term loan to start your business at 550 and 600 credit score.

How much loan can you get as a business startup

The amount given by lenders to borrowers for starting a business differ from lender to lender. Typically, you can borrow from ksh. 1000 to ksh. 30000. It depends on the lender or the financial institution.

Documents needed for business startup loans

The documents needed for business startup loans are:

  1. National ID
  2. Proof of address and recent passport
  3. Certificate of registration for some lenders.

Is it difficult to get a business startup loan?

It is not hard to get a business startup loan. The issue is that some banks  believe that lenders require cash flow to be able to make payment and not default.

General ways of repaying business startup loans

Repaying business startup loans differ from lender to lender. The general way of repaying it includes:

  1. Open you M-Pesa account
  2. Choose paybill
  3. Enter the business number of the loan platform
  4. Input the amount you want to repay
  5. Enter your M-Pesa pin
  6. Click ok and send.

You can also choose to transfer from your bank account. It all depends on the lender’s mode of loan repayment.


Failure to access bank loans should not be the end of the road for your small business. Check out other means. Carry out your study well. Thanks to the various online lending options that exist in Kenya today. 

Categories: Business Loans