Becoming a successful entrepreneur often requires one thing above all—access to affordable business financing. Whether you’re running a start-up, SME, or expanding a growing company, the right loan can unlock opportunities.
In this guide, we’ll explore the top 7 business loans in Kenya that combine low interest rates, flexible repayment options, and easy application processes. If you’ve been wondering how to fund your hustle, this article has you covered.
1. KCB Bizna Loan
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Interest Rate: From 13% per annum
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Loan Amount: Up to KSh 5 million
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Features: Flexible repayment up to 36 months, LPO financing available
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Why It’s Great: KCB has strong SME support and fast loan approvals for businesses with good bank history.
2. Equity Bank SME Loan
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Interest Rate: 13% – 15% per annum
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Loan Amount: Up to KSh 10 million
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Features: Asset financing, working capital loans, and invoice discounting
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Why It’s Great: Tailored packages for agribusiness, women-owned enterprises, and startups.
3. Co-operative Bank Business Loan
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Interest Rate: Competitive, negotiable
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Loan Amount: Depends on collateral or business records
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Features: Asset finance, trade finance, and overdraft facilities
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Why It’s Great: Co-op Bank is friendly to small traders and has loan officers across Kenya.
4. Absa Biashara Loan
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Interest Rate: 14% – 16% per annum
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Loan Amount: KSh 50,000 – KSh 5 million
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Features: Term loans, unsecured loans, and invoice financing
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Why It’s Great: You don’t always need collateral, making it attractive for small businesses.
5. Sidian Bank LPO Financing
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Interest Rate: Around 15% per annum
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Loan Amount: Based on LPO/contract value
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Features: Designed for entrepreneurs with confirmed tenders/contracts
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Why It’s Great: If you’re into tendering, this loan gives you upfront cash to deliver projects.
6. NCBA SME Loan
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Interest Rate: From 13% per annum
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Loan Amount: Flexible, depending on business turnover
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Features: Overdrafts, asset finance, and invoice discounting
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Why It’s Great: NCBA has digital solutions for businesses, making applications seamless.
7. Digital Business Loans (Branch, Tala & Zenka Biz)
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Interest Rate: 10% – 18% monthly (higher but quick)
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Loan Amount: KSh 5,000 – KSh 500,000
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Features: 100% mobile, no collateral required
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Why It’s Great: Best for microbusinesses that need instant cash flow support.
How to Improve Your Chances of Loan Approval
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Keep your KRA and tax compliance certificate updated
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Maintain clean bank statements & M-Pesa records
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Register your business properly with eCitizen
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Avoid CRB blacklisting
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Apply only for loans you can realistically repay
Final Takeaway
Getting a business loan doesn’t have to be complicated. With the right documents, good repayment plan, and knowledge of the best options, you can secure funding to grow your business.
👉 Pro tip: If you’re also into tenders, pair LPO financing with SME loans to deliver projects and scale your hustle.
Start today—compare the above options and choose the one that matches your business goals.
FAQs
Q1. What is the easiest business loan to get in Kenya?
Digital loans (Branch, Tala, Zenka) are fastest, but bank loans are better for larger amounts.
Q2. Can I get a business loan without collateral in Kenya?
Yes. Banks like Absa and Equity offer unsecured loans, while mobile apps don’t need collateral.
Q3. What documents do I need to apply for a business loan?
KRA PIN, Business Registration Certificate, bank statements, and in some cases, audited accounts.
