20th-Jan-2026 • Reddington Onyango • Investment and Funding
Small and Medium Enterprises (SMEs) in Kenya are the backbone of our economy, yet they often struggle with securing sufficient funds to grow. However, the landscape for investment and funding is evolving, offering promising opportunities for SME owners.
Banks remain a primary source of funding for many businesses in Kenya. The Central Bank of Kenya reports that by the end of 2019, bank loans to SMEs had grown by 17.5%. To qualify, applicants usually need a solid business plan and good credit history.
Crowdfunding platforms, like M-Changa and OneAfrica, have gained popularity among Kenyan SMEs. These platforms allow businesses to raise funds by soliciting small amounts from a large number of people, often through social media.
BDS providers like the Kenya National Chamber of Commerce and Industry (KNCCI) offer support to SMEs in accessing funding. They provide training, mentorship, and networking opportunities that can improve a business's prospects for securing loans or investment.
Angel investors are high net worth individuals who invest their own money into businesses in return for equity. In Kenya, platforms like Nairobi Angels and Savannah Fund connect SMEs with these potential investors.
The Kenyan government has implemented various programs to support SME funding. The Young Entrepreneurs Development Programme (YEDP) provides loans of up to KES 1 million to young entrepreneurs with innovative business ideas.
Remember, securing funding is a journey and may require patience. However, with persistence and the right strategies, SME owners can unlock new opportunities for growth and success.
