The Kenyan government has implemented several loan programs to support entrepreneurs and small businesses. 

These loans provide affordable financing, encouraging economic growth, job creation, and poverty reduction. 

Whether you’re a youth, woman, or person with a disability, there’s a government-funded initiative tailored to your needs.

Top Government Loans for Entrepreneurs in Kenya

Here’s a comprehensive guide to government loans in Kenya for starting a business, their eligibility criteria, and application processes.

Youth Enterprise Development Fund (YEDF)

The Youth Enterprise Development Fund aims to empower young entrepreneurs aged 18–34 by offering affordable loans to start or expand businesses.

YEDF offers two types of loans, namely:

Individual Loans

For youth-owned businesses.

Loan amounts range from Ksh 50,000–500,000.

Group Loans

For registered youth groups.

Amounts range from Ksh 100,000–1,000,000.

Features of YEDF Loans

• Low-interest rates (as low as 8% annually).
• Grace period of up to 6 months.

Requirements for YEDF Eligibility

• Must be within the 18–34 age bracket.
• The business must be legally registered.
• Group loans require at least 70% youth membership.

YEDF Application Process

Step 1: Visit the YEDF website or local constituency office.

Step 2: Fill out an application form and attach supporting documents (ID, registration certificate, business plan).

Step 3: Submit the application for review.

Uwezo Fund

The Uwezo Fund supports youth, women, and persons with disabilities by providing interest-free loans.

Uwezo Fund offers one type of loan, namely:

Group loans 

Ksh 50,000–500,000.

Features of Uwezo Fund Loans

• Zero interest (only 1% administration fee).
• Includes training on entrepreneurship and financial management.

Eligibility for Uwezo Fund

• The group must be registered for at least six months.
• Members must be aged 18 and above.
• Must have an operational bank account.

Uwezo Fund Application Process

Step 1: Form or join a registered group with at least 5 members.

Step 2: Obtain and complete the Uwezo Fund application form from your constituency office.

Step 3: Submit the application with your group’s business proposal.

Women Enterprise Fund (WEF)

The Women Enterprise Fund provides loans to women entrepreneurs, empowering them to start or expand their businesses.

The Women Enterprise Fund offers two types of loans, namely:

Tuinuke Loan

A group loan for registered women’s groups.

Ksh 50,000–500,000.

Individual Loans

For women in SACCOs or microfinance institutions.

Ksh 100,000–2,000,000.

Features of WEF Loans

• No collateral required.
• Affordable repayment terms of up to 2 years.

Eligibility for WEF

• Must be a registered women’s group or SACCO member.
• Business must be operational or in the planning stages.

WEF Application Process

Step 1: Visit your local WEF office.

Step 2: Submit a filled application form with supporting documents (ID, registration certificate, business proposal).

Step 3: Wait for loan approval and training.

National Government Affirmative Action Fund (NGAAF)

The NGAAF targets marginalized groups, including youth, women, and people with disabilities, to support small-scale businesses.

NGAAF offers one type of loan, namely:

Group Loans

up to Ksh 500,000.

Features of NGAAF Loans

• Interest-free loans.
• Flexible repayment terms.

Eligibility for NGAAF Loans

• The group must be registered and operational.
• Projects must align with NGAAF’s objectives (e.g., job creation, poverty alleviation).

NGAAF Application Process

Step 1: Contact the NGAAF office in your county.

Step 2: Provide your group’s registration details and business proposal.

Step 3: Attend required training sessions if applicable.

Biashara Kenya Fund

The Biashara Kenya Fund is a consolidation of multiple programs (YEDF, WEF, and Uwezo Fund) designed to streamline loan access for youth, women, and SMEs.

Biashara Kenya Fund offers two types of loans, namely:

Start-up loans

Ksh 50,000–1,000,000.

Expansion loans

Ksh 1,000,000–5,000,000.

Features of Biashara Kenya Fund Loans

• Low-interest rates (3–7% annually).
• Flexible repayment periods of up to 3 years.

Eligibility for Biashara Kenya Fund Loans

• Business must be registered and operational.
• Applicants must attend financial literacy training.

Biashara Kenya Fund Application Process

Step 1: Register through the Biashara Kenya Fund portal or local office.

Step 2: Submit your business plan and required documentation.

Step 3: Await approval and disbursement.

Hustler Fund

The Hustler Fund is a government initiative targeting small and medium enterprises (SMEs), particularly informal businesses.

The Hustler Fund offers two types of loans, namely:

Personal Loans

Ksh 500–50,000.

Group Loans

Up to Ksh 250,000 for registered groups.

Features of Hustler Fund Loans

• Interest rate of 8% annually.
• Quick disbursement via mobile money.

Eligibility for Hustler Fund Loans

• Must have a valid national ID and be over 18.
• For group loans, groups must be registered.

Hustler Fund Application Process

Step 1: Dial *254# (or use the designated mobile app).

Step 2: Register your details and select the loan type.

Step 3: Accept terms and conditions for immediate disbursement.

Industrial and Commercial Development Corporation (ICDC) Loans

The ICDC supports medium and large enterprises, especially in manufacturing and industrial sectors.

The ICDC offers two types of loans, namely:

Start-up loans

Ksh 1,000,000–20,000,000.

Expansion loans

Ksh 10,000,000–50,000,000.

Features of ICDC Loans

• Competitive interest rates.
• Tailored repayment plans.

Eligibility for ICDC Loans

• Registered businesses with valid licenses.
• Must have collateral for large loans.

ICDC Application Process

Step 1: Submit a detailed business plan and financial projections to the ICDC office.

Step 2: Provide collateral documents for large-scale loans.

Step 3: Await approval after review.

Tips for Securing a Government Loan

Notable ways of improving chances of securing government loans include:

Developing a Strong Business Plan

Clearly outline your goals, target market, and financial projections.

Attaining Regulatory Compliance

Register your business and meet all legal requirements.

Joining or Forming Groups

Many government loans require group membership for security and accountability.

Leveraging Training Opportunities

Attend free government-sponsored entrepreneurship training to improve your chances of approval.

Maintaining Good Credit

A positive credit history enhances eligibility for larger loans.

Take Away on Government Loans for Business

Government loans in Kenya provide an excellent opportunity for entrepreneurs to start or grow their businesses. 

Programs like the Youth Enterprise Development Fund, Uwezo Fund, and Hustler Fund are designed to cater to various demographics, ensuring that everyone has access to affordable financing. 

By meeting eligibility requirements and preparing a strong business plan, you can secure funding to turn your entrepreneurial dreams into reality.