25th-Jan-2026 • Sheldon Cooper • Investment and Funding
Small and Medium Enterprises (SMEs) are the backbone of Kenya's economy, accounting for over 98% of all businesses and employing approximately 70% of the country's workforce. However, access to funding remains a significant challenge that stifles growth. This article aims to demystify investment and funding opportunities available for Kenyan SMEs.
Crowdfunding platforms like M-Changa, Kamata, and Weshare have revolutionized fundraising by connecting businesses with potential investors via online campaigns. For instance, local startup 'GreenPak' raised KES 20 million through crowdfunding, aiding its expansion to new markets.
Banks such as KCB Group, Equity Bank, and Cooperative Bank offer business loans with varying terms. However, the stringent requirements often deter SMEs. Alternatively, digital lending platforms like Branch, Tala, and M-Shwari provide quicker access to credit, albeit at higher interest rates.
Competitions like the World Bank's XL Africa program and local initiatives like the Presidential Youth Empowerment and Employment Initiative (PYEEI) offer grants to promising SMEs. Participating in these competitions can lead to valuable networking opportunities as well.
Joining angel networks like Nairobi Angels, East Africa VC, and Savannah Fund not only provides access to potential investors but also guidance from seasoned entrepreneurs. For instance, 'Jumia' raised Series A funding of $5 million through the Savannah Fund.
Platforms like SaccoTech facilitate peer-to-peer lending, allowing entrepreneurs to borrow from fellow business owners. This fosters a sense of community and mutual trust that traditional banking often lacks.
By exploring these investment and funding options, Kenyan SMEs can overcome the financial hurdles that stand in the way of growth and success.
