Government Loans To Start A Business In Kenya

Government Loans To Start A Business In Kenya

If you are a business owner or an entrepreneur looking for government loans to start a business in Kenya, then you have to read this article. In this article, we have provided some of the government loans available in Kenya for you to support your business.

These government loans are only available for businesses that meet up with the requirements. So you have to try as much as possible to meet up after going through this article.

On the other hand, the Kenyan government aims to support and empower business owners and entrepreneurs through the provision of loans, and to make sure your business experiences economic growth. That’s why they have criteria for only serious-minded entrepreneurs.

However, read on to widen your knowledge about this loan.

What Are The Government Loans To Start A Business In Kenya?

Here are 6 government loans to start a business in Kenya:

1. Hustler Fund: Also known as The Financial Inclusion Fund, is one of the government loans to start a business in Kenya. Their sole aim is to support Kenyan citizens by giving them instant loans upon research.

Meanwhile, this program was launched in late 2022 by President Williams Ruto, who has the intention to provide at least $420 million in loans.

2. Uwezo Fund: Uwezo Fund is also a government loan to start a business in Kenya. It is a program that has a vision 2030 to provide financial access to women, youth, and persons with disabilities to promote their businesses and enterprises.

Since its inception, this fund has disbursed more than Ksh 7.2 billion and has supported more than 1,124,221 beneficiaries which comprises 69% female and 39% male through the provision of accessible and affordable credit, entrepreneurship skills, networking, and many more.

3. Youth Enterprise Development Fund (YEDF): The YEDF was formed through the Public Financial Management Act (2006). And it is currently domiciled at the State Department for Micro, Small & Medium Enterprises Development.

It is one of the funds which the government brought to support the youth and promote employment.

One of its tangible missions is to increase the economic opportunities for youths, and also the participation of Kenyan Youth in job creation through affordable financing, strategic partnership, innovation, and enterprise development.

Generally, they provide loans and market support to youth enterprises.

4. Biashara Kenya Fund: This is also another government loan to start a business in Kenya. They offer different varieties of loans also.

5. Women Enterprise Fund (WEF): WEF is a government loan introduced to provide access to financial services to women.

Meanwhile, the Women Enterprise Fund (WEF) was established in 2007 with five mandates such as capacity building, financial inclusion through affordable credit, market linkage, marketing opportunities, and infrastructure development which is geared towards economic and social empowerment of women as its objective.

6. Micro and Small Enterprises Authority (MSEA): MSEA also known as Micro and Small Enterprises Authority is a government loan to start a business in Kenya. It is/was established to promote, develop, and regulate the Micro and Small Enterprises (MSE) sector in Kenya.

Furthermore, the authority is responsible for the coordination, harmonization, facilitation, and integration of various public and private policies, activities, and programs related to Micro and Small Enterprises in Kenya.

These are the top 6 government loans to start a business in Kenya.

How Do I Get A Government Loan To Start A Business In Kenya?

For you to get a government loan to start a business in Kenya, there are steps you must follow and requirements to fulfill. However below are some of them:

1. Do A Research: You start by researching every government loan to know their requirements, eligibility, loan amount, loan duration, interest rates, and how to do the repayment.

With this research, you will know how to fulfill their requirements.

2. Develop A Business Plan: Developing a business plan is a closer step towards getting a government loan in Kenya. However, you have to develop a business plan about your business and the processes you will follow in running your business.

Mainly, it should include the competition, target market, and marketing strategies.

3. Fulfill All Paperwork: This has to do with business registration, identity verification (international passport or national ID), bank statements, and both licenses and permits. Make sure you fulfill all these requirements.

4. Apply For A Government Loan: Apply for the government loan either online or offline depending on the criteria. And then wait for approval.

In everything just make sure that you meet all the requirements. And if the application becomes successful, you will still go ahead and send a loan agreement, and also provide any requested collateral if there is such.

Ambassador Victor Chidera
Ambassador Victor ChideraAmbassador Victor Chidera is a business consultant, writer and a blogger. He provides lots of professional and expert advice to small businesses, entrepreneurs and organizations. He has many years of experience in business, teaching field, and research work. And his aim is to provide business articles that matters to you both nationally and internationally.
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