Business Financing Solutions in Kenya – 2025 Guide

SME Loans

Absa Bank’s Biashara Loan offers unsecured facilities up to KSh 6 million with tenors up to 60 months and your choice of fixed or variable interest rates

Invoice discounting of up to KSh 50 million and LPO financing up to KSh 12 million help manage cash flow without tying up assets.

Co‑operative Bank’s SME loans provide funding from KSh 100,000 to KSh 10 million, with repayment periods up to 48 months and digital application via the Biashara app.

Agriculture Loans

The Agricultural Finance Corporation (AFC) offers loans at a 10% reducing‑balance rate for general agribusiness, and special sugarcane projects at just 5%.

In the Medium‑Term Budget, the government allocated KSh 10 billion to AFC to support priority value chains and boost rural incomes.

One Acre Fund and NGOs provide asset‑backed financing for inputs and equipment, aligning repayment with harvest cycles to minimize default risk..

Government‑Backed Loans

The Uwezo Fund extends constituency‑based loans of KSh 50,000–100,000 to groups of youth, women, and PWDs, with a 24‑month tenor and a 6‑month grace period.

The Women Enterprise Fund (WEF) provides group loans ranging from KSh 50,000–750,000 at subsidized rates, along with capacity‑building services.

The Youth Enterprise Development Fund (YEDF) offers up to KSh 600,000 to registered youth groups, paired with mentorship to drive sustainable ventures.

Special Interest Group (SIG) loans deliver micro‑credit at 8% p.a., with 5% of each loan placed into a savings account to promote discipline