Ever wondered which is the best bank in Kenya? What about small business loans – do you have an idea which financial institution offers the most affordable loaning options in the country currently?
Well, if you’ve been looking for some capital to power up your small business, then our list of top 10 best SME banks in Kenya will make it even much easier for you to find the best deals on the market.
Disclaimer: This article is based on research from: CBK data and an article published by Daily Nation Money Magazine. This article is simply based on prevailing interest rates offered by different banks to small business owners. These rates may however change from time to time. The CBK currently charges a base lending rate of 8.54%.
Top 10 Banks Offering Cheap SME Loans
10.Jamii Bora Bank (20.41%)
Jamii Bora currently has three categories of SME loans notably Biashara Plus, Super Biashara Plus and Dhahabu loan. The eligibility criteria is that one needs to have operated the business from a permanent location for at least 1 year and must have a proven credit track record.
They have branches in most parts of the country and aside from SME financing they offer mortgage banking, agri banking, medium enterprise banking, institutional banking among others.
9.Kenya Commercial Bank (KCB) (18.71%)
Offering flexible loans with a repayment period of up to 36 months, Kenya Commercial bank is the ninth cheapest local bank to borrow a small business loan from. They allow for loans of up to Ksh50 Million upon one meeting the qualifying criteria which is – provision of 3 years of audited accounts and a clear financing plan for the business.
KCB have branches across the country and agents in almost every street corner. Apart from SME financing they offer mortgage loans, LPO financing and corporate financing among other options.
8.Dubai Bank (18.66%)
Having operated in the country since 1982 Dubai bank has grown from strength to strength and it now offers the eight most affordable SME loaning option in town. They have their main branch along Kenyatta Avenue in Nairobi which serves alongside other branches spread across major cities in the country.
They've also launched a mobile portal “M-Sasa” which meet the need for more branches in remote parts of the country. Apart from Small Business loans Dubai Bank offers business loans at 20.66% and personal loans at 12.9%.
Related Article: How to convince the Big Banks to loan your small business
7.Family Bank (17.76%)
The seventh cheapest small business financier in the country is Family Bank which currently offers Micro SME facilities such as: Vijanaa Boost loan package (targeting Kenyan youth), Wezesha loans, LPO micro and even cheque discounting.
They have a highly intuitive website that allows you to search for your nearest branch and in addition to that they have a mobile-based service called Pesa Pap. In addition to Micro SME loans Family bank offers Personal Mortgage loans at 12.49% and Personal loans at 14.62%.
6.Paramount Universal Bank (17.5%)
Paramount Universal Bank is a fast growing retail bank that has been operating in the country since 1993. In December 2013, they were ranked as the 37th biggest bank in the country by asset base.
They offer flexible corporate and sme financing options including business loans, overdrafts, asset financing and hire purchases/ leasing facilities. Paramount Universal Bank also has a record low rate for personal loans at 9.5% – which is currently one of the cheapest in the country.
5.Equity Bank (17.5%)
Known for its out-of-the-box innovations and daring approaches to the financial market, Equity Bank has maintained a tight grip of the MicroSME market for over 10 years. Currently, their loans are the fifth cheapest in the country going by the prevailing rates.
The bank has branches and agents in literary every corner of location in the country. They recently launch a new service dubbed Equitel which is aimed to improve mobile money penetration in the region.
4.NIC Bank (16.8%)
Known to be the premier asset financing bank in the country the NIC bank has gradually catapulted itself to the very top of the rungs over the last one decade. Their SME lending products are tailored to meet the needs of various tiers of business entities.
They have split the SME sector into three levels, namely: Lower tier, Middle tier and Upper tier. In addition to they offer personal mortgage at 10.95% and personal loans at 16.43%.
Related Article: Alternative sources of capital for a small business in Kenya
3.Standard Chartered Bank (16%)
Standard Chartered Bank (or Stan Chart) has been operating in Kenya for the last 114 years and it currently has a total of 34 branches spread across the nation. They are well known for their Seeing is Believing campaign which is promoted alongside the Nairobi Marathon.
But beyond the works of charity and market domination, Stan Chart has a soft spot for small business owners. Their SME loans are currently the third cheapest option in the country going costing the borrowers 16% interest rate. They also offer personal loans at a rate of 19.4%.
2.Commercial Bank of Africa (14.81%)
Commonly referred to as CBA, the Commercial Bank of Africa offers a wide variety of SME lending solutions ranging from Asset finance to term loans and liquidity management solutions. Moreover, they are part and parcel of the popular M-shwari initiative (offered in partnership with Safaricom) and this has played a big role in bringing them closer to the people.
Aside from offering affordable and flexible SME loans CBA gives personal mortgage at 13.62% and personal loans at 15.67%.
1.African Banking Corporation (14.63%)
Right at the top of our top 10 best SME banks in Kenya is the ABC bank which currently offers an option that is 3% cheaper than what most major banks give to small business owners. The ABC was established 30 years ago and they have so far grown to 10 branches countrywide (4 branches in Nairobi and other 6 upcountry branches in Lamu, Eldoret, Meru, Nakuru, Kisumu and Mombasa).
Their SME lending services include: capital for expanding premises, purchasing buildings, boosting stock, working capital, acquiring equipment and tools. They also offer asset finance, overdrafts and supply chain financing facilities.
Image Credits: Business daily & KenyaMoja
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