4th-Nov-2025 • Faith Chebet • Investment and Funding
For many small and medium enterprises (SMEs) in Kenya, securing the right investment or funding can be a game-changer. But where do you start? This guide provides an overview of key investment and funding avenues for Kenyan SMEs.
The Kenyan government offers various funding programs designed to support local businesses. For instance, the Kenya Development Bank (KDB) provides loans for businesses in sectors such as agriculture, manufacturing, and services.
Another initiative is the Youth Enterprise Development Fund (YEDF), which offers affordable credit facilities and business training for young entrepreneurs.
Venture capital (VC) firms and angel investors play a crucial role in funding high-growth potential businesses. They invest in exchange for equity, providing much-needed funds to scale operations.
Kenya has seen an increase in VC activity in recent years, with notable players like Savannah Fund, 88mph, and Nest Africa focusing on early-stage tech startups.
Crowdfunding platforms allow businesses to raise funds from a large pool of investors through online campaigns. This approach can be particularly effective for businesses with a strong online presence and engaging story.
Local crowdfunding platforms in Kenya include M-Changa, Weshare, and Fetch.Africa. Each platform has unique features, so it's essential to research which one best suits your business needs.
Peer-to-peer (P2P) lending platforms match lenders with borrowers, allowing businesses to secure loans quickly and conveniently. P2P platforms in Kenya include Branch, M-Shwari, and Tala.
To increase your chances of approval on these platforms, ensure you have a solid credit history and a well-presented business profile.
Grants and business competitions offer funding without the need to give up equity. While competitive, they can provide significant financial support for your venture.
For example, the GSMA Innovation Fund Africa supports digital startups focused on mobile services, while the Tony Elumelu Foundation offers a comprehensive program for entrepreneurs across Africa.