Last Updated:

How to Get Funding for a Business Idea in Kenya

When starting a business, one of the things to consider is the source of funding for your startup. You can get business funding through various platforms. There are organizations that provide funding for businesses in Kenya. Some of them also provide mentorship programs to entrepreneurs. Some of the options may require you to prove that your business idea is viable. You can consider the following business funding in Kenya.

1. Youth Enterprise Development Fund

The Youth Enterprise Development Fund is an initiative by the Kenyan government to create opportunities. It was started in 2006 and it has played a critical role in helping youths get into self-employment. It is so far the best funding for businesses if you are a youth aged between 18 and 35 years. You need to be in a group of at least 15 youths to secure funding.

2. Uwezo Fund

Uwezo Fund business funding Kenya was started in 2013 and is meant to benefit the youth, women and people living with disabilities. The aim of the Uwezo Fund is to promote gender equality and also eliminate poverty.

The initiative gives loans of between 50,000 and Ksh 500,000 at a time. Apart from funding businesses in Kenya, it also offers mentorship to entrepreneurs.

3. Women Enterprise Fund

The Women Enterprise Fund is an initiative by the Ministry of Gender. It targets women entrepreneurs by providing them with funding for their businesses. The initiative also helps women to market products and services their businesses produce. Ultimately, its main role is to help in gender equality and also help women to be financially stable.

Read also: Sources of business ideas. 

4. Industrial Development Fund

Industrial Development Fund was established in 1973 to provide funding for medium and large industries. The aim of the funding is to help in the growth of industries in Kenya. It provides secured loans that are available in form of project or asset financing or hire purchase. If you are planning to expand your business, you can apply for this kind of business funding.


Industrial and Commercial Development Corporation (ICDC) provides business funding in the form of medium-term and long-term financing. The role of ICDC is to promote industrial development in Kenya.

It is one of the items that the government is using to achieve Vision 2030. ICDC provides business funding in the form of joint ventures, commercial loans, venture capital and asset financing.

6. Micro Lenders

Micro Lenders are small banking institutions like microfinance that provide credit and deposit facilities to startups. You can get a loan from microfinance to fund your business. Microlenders offer better loan terms compared to commercial banks. You can get funding by presenting your business idea to them so that they can evaluate its viability. If they like the idea, they will provide you with credit.

7. Kenya Industrial Estate

Kenya Industrial Estate (KIE) is under the Ministry of Industrialization and its aim is to help promote industrialization in the country. It offers business financing to businesses like the Jua Kali sector through loans of between Ksh 100,000 and Ksh 500,000.

It also offers entrepreneurial skills to small and medium-sized enterprises.

8. Venture Capitalists

The other way to get funding for your business is through venture capitalists. Venture capitalists often listen to your business idea and then determine its viability. If it is viable, they will fund the business idea and then get a share of ownership of your business.

However, they do not engage in the day-to-day running of your business. Some of the venture capitalists in Kenya include Nairobi Garage, Monsanto Fund and Savanna Fund.

9. Angel Investors

Angel Investors are usually wealthy people that join hands to help entrepreneurs launch businesses. They first have to believe in your idea before they can provide funding to your business.

They also provide mentorship to entrepreneurs and take part in the day-to-day operations of the business. Invested Capital is one of the commonly known angel investors in Kenya.

10. Crowd Funding

Crowdfunding is a form of business financing where many lenders come together to fund a business idea. You need to convince them about the viability of your business idea.

Once they like the idea, they will provide funding. Some of the most renowned crowdfunding platforms include Kiva, Indiegogo, AfricInvest and Invested Capital.

Read also: Best crowdfunding platforms. 

Summary of Business Funding Kenya 

Funding for small businesses in Kenya is very critical. Lack of capital and mentorship is one of the factors that hinder people from investing in their business ideas. If you have a business idea, you can get business funding through any of the following ways. You are also likely to benefit from mentorship programs and entrepreneurial skills offered by some of the platforms.

Read More