22nd-Dec-2025 • Martin Mwangi • SME Funding Options
In the bustling Kenyan business landscape, small and medium-sized enterprises (SMEs) form the backbone of the economy. However, accessing the right funding is often a hurdle for many SME owners. To help you navigate this terrain, we have compiled a list of SME funding options that can catapult your business to new heights.
Traditional bank loans remain one of the most popular funding sources for Kenyan SMEs. Banks like Equity Bank, KCB Group, and Co-operative Bank offer various loan products tailored to suit different business needs.
Microfinance institutions provide loans to SMEs that may not qualify for bank loans due to their size or credit history. MFIs like Faulu Kenya and Juhudi Kilimo offer affordable loan products with flexible repayment terms.
The Kenyan government offers various grants aimed at supporting SME growth. For instance, the Ministry of Industry, Trade and Cooperatives provides grants for capacity building, market access, and technology adoption through programs like Kadi Panda.
Venture capital is an option for high-growth SMEs that are ready to scale up. Investment firms like Savannah Fund and 88mph provide funding for innovative businesses in exchange for equity.
Crowdfunding platforms like M-Changa allow SMEs to raise funds from a large number of people, typically via the internet. This can be an excellent option for projects with wide public appeal or those seeking to generate buzz.
P2P lending platforms like Branch and M-Shwari connect borrowers directly with lenders, often at lower interest rates compared to bank loans. These platforms are particularly popular among mobile money users.
As you explore these funding options, remember that every business is unique, so it's essential to evaluate each option based on your specific needs and circumstances. Don't be afraid to ask for guidance from financial advisors or mentors in the industry.