One of the challenges that people face when starting a business is funding. Funding for startups in Kenya can help you launch or expand your business. There are organizations that can help you fund your startup idea by giving your startup capital and also mentorship. Kenya is a Silicon Savannah with some of the most funded startups. Therefore, if you are seeking to invest in a startup in Kenya, you can consider the following Kenya startup funding options.
Youth Enterprise Development Fund
The Youth Enterprise Development Fund is a government initiative that aims at helping the youth fund businesses. It was established in 2006 and has availed many opportunities to Kenyan youths who want to venture into business. The fund is available to Kenyan people aged between 18 and 35 years. The government started the initiative as a way to fight unemployment.
Women Enterprise Fund
Women Enterprise Fund is an initiative by the Ministry of Gender. The initiative provides credit to women and also helps them market their products and services. Its aim is to help women stabilize financially and also promote employment through the creation of jobs.
The Uwezo Fund was started in 2013 and mainly focuses on women, people with disabilities and the youth. It also offers mentorship programs to entrepreneurs. You can get a startup loan ranging between Ksh 50,000 and Ksh 500,000. The aim of the program is to provide gender equality and eradicate poverty by creating opportunities.
Venture Capitalists are financiers who help with funding for startups in Kenya. They listen to your business idea and evaluate its viability to determine if it is worth funding. If they like your business idea, they will provide you with funding in exchange for ownership of a certain percentage of your business. Some of the best venture capitalists you can consider in Kenya include Venture Capital for Africa (VC4A), Nairobi Garage and Seed Capital Investment.
Angel Network is a Kenyan startup funding where financiers first need to believe in your business idea. If they like your business idea and feel that it is viable, they will provide funding and training and also help with the day-to-day running of the entity.
Industrial Development Fund
The Industrial Development Fund (IDF) was established in 1973 and offers secured loans to startups. IDF is under the Ministry of Industrialization, Trade and Enterprise Development. It provides loans to medium and large enterprises. It is a good Kenyan startup funding for people looking for asset financing or acquires industrial plants on hire purchase terms. You can get assistance to start or expand your business through IDF.
The Industrial and Commercial Development Corporation (ICDC) is a Kenyan startup funding for businesses. It provides medium-term and long-term funding for businesses. ICDC provides venture capital, joint ventures, asset financing and commercial loans to businesses. It is one of the tools the government is using in the quest for Vision 2030.
Agriculture Finance Corporation
Agriculture Finance Corporation is a Kenyan funding initiative that helps people in the agricultural sector. It was started after independence to help with the transfer of land. Agriculture is the backbone of the Kenyan economy. The corporation provides credit to Kenyan farmers.
Micro Finance institutions provide funding to entities in Kenya. They provide deposit facilities and credit to businesses. Microfinance institutions are better compared to banks when it comes to business loans in Kenya. They offer better startup loans in Kenya. Some of the best microfinance institutions that can provide you with business funding include Sumac, Faulu, Musoni MFI and Zawadisha.
Crowdfunding is lenders that you can locate in one place. They look at your business idea and evaluate its viability. Once they are satisfied that the business idea is viable, they will provide you with startup capital. Some of the best crowdfunding platforms in Kenya include Kiva, Indiegogo, Kickstarter and Zidisha.
There are many foundations that provide Kenyan startup funding. They provide funding in the form of grants and prizes and interest-free loans. You can look out for competitions that you can participate and you can possibly win a prize for business funding. Most of the competitions are usually advertised online. Among the foundations that offer business funding include Chandaria Foundation, Safaricom Foundation and MasterCard Foundation.
Final Thoughts on Kenya Startup Funding
Kenyan startup funding is a big deal for Kenyan entrepreneurs in the Kenya startup ecosystem. There are many people with business ideas but can’t put them into action since they have no money. There are many ways you can get funding for startups in Kenya including some of the ways I mentioned above. Go for the most convenient Kenyan startup funding for your business.