4 Startup Financing Sources In Kenya

    December 13, 2015   No comments

The Kenyan youths are drastically changing from chasing after jobs to chasing after funding to finance the taking off or growing of their start-ups businesses. It's with no doubt that the advantages of owning a business outdo those of being an employee by a greater margin. Where then will one get the funding for starting a biashara after unsuccessful job hunting or unsatisfactory job?
In this post, I'll give an overview of the sources of loans for start-ups in Kenya.For full descriptions of these companies and contacts,PLEASE VISIT LENDERS

Venture Capitalists

These are financiers who will listen to your start-up business idea and evaluate its viability. If they are fully convinced by your idea, they'll provide the funding and be part of the ownership(a percentage of your business will belong to the venture capitalist) but will never be involved in the day to day activities of the business.Examples of venture capitalists in Kenya include among others;Nairobi Garage, Seed Capital Investment,Savannah Fund, Westpac,Growthhub, Grofin, Monsanto Fund and Jacana.

Angel Networks

These are finanaciers who will first have to believe in your business idea as a viable one.They'll then provide funding, training and be part of the day to day business activities to ensure the startup grows.So far Investeq Capital remains the well known angel network for startups.

Crowdsourcing

This is where you get several lenders at one place who will first have to be convinced by the viability of your startup business. The most popular crowdsourcing platforms are Zidisha and Kiva.Others include Cheetah fund, Wakibi, Kickstarter, Indiegogo,Appbackr,Quirky AfricInvest, Agrivie Fund,Investeq Capital, Leapfrog, Eva Fund,Fasini,Enabilis and Crowdfunder.

Micro lenders

There are hundreds of microfinance institutions in Kenya both credit only and deposit taking.Micro lenders have a good history of uplifting start-ups compared to commercial banks in kenya.Visit any and give them your startup idea. Some examples include:U&I microfinance, Faulu,Imarika,Century, Uwezo,Youth Fund, Women Enterprise fund, Zawadisha, Sumac, Letshego kenya, Opportunity kenya, ECLOF kenya, Milango microfinance, Musoni MFI, Bimas MFI, Plan international,Yehu microfinance, Riverbank,Ufanisi-AFR, Rupia MFI, Kopo kopo, Unaitas, Juhudi kilimo MFI, Window MFI, Craft Silicon, Planet Rating, Taifa MFI and Greenland Fedha.

Financial foundations

Sometimes foundations can give funding to startup businesses in form of interest free loans, grants or prizes. Some foundations have known dates when they give out loans, grants or hold competitions while others don't have.You must be on the look always never to miss any announced dates set for competitions.Ongoing now is the Total Startupper of the year.Examples of other foundations include ;Safaricom foundation, Chandaria foundation, Citi foundation, MasterCard foundation, Coca-cola foundation, Aga Khan foundation, Ford foundation, The Tony Elumelu, Micro loan, Virgin unite and African Leadership foundation.
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Mwabaya Katana

Posted By Mwabaya Katana

Mwabaya Katana is a Personal Finance online writer.He is the founder of 'Loans Kenya' Blog.

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