Commercial, SACCO, and County-Based Options
Comparing interest rates, repayment terms, and approval timelines for SMEs and startups
In 2025, Kenyan entrepreneurs have more financing options than ever—from commercial banks and SACCOs to county-based loan programs and digital lenders. But choosing the right business loan means understanding the interest rates, repayment terms, and approval timelines across providers. This guide compares top options to help you find the best fit for your enterprise.
1. Commercial Bank Loans
Overview
Commercial banks offer structured loans for working capital, asset financing, and expansion. Rates vary widely depending on the bank, loan size, and borrower profile.
Interest Rates (2025 Averages)
| Bank | Interest Rate (%) | Approval Time |
|---|---|---|
| Commercial Intl Bank (CIB) | 19.91 | 7–14 days |
| Access Bank Kenya | 19.51 | 5–10 days |
| Credit Bank PLC | 18.83 | 3–7 days |
| Co-operative Bank | 16.87 | 3–5 days |
| KCB Bank | 16.17 | 2–5 days |
| NCBA Bank | 16.11 | 2–4 days |
| Equity Bank | 14.89 | 1–3 days |
| Stanbic Bank | 12.84 | 3–5 days |
Terms
- Loan sizes: KSh 100,000 to KSh 50 million
- Repayment periods: 6 to 60 months
- Collateral: Required for larger loans
- Digital options: Available via mobile apps (Equitel, NCBA Now, Loop)
2. SACCO Loans
Overview
SACCOs offer affordable loans to members, often with flexible collateral and lower interest rates.
Top SACCOs
| SACCO | Interest Rate (%) | Max Loan Size | Approval Time |
|---|---|---|---|
| Unaitas SACCO | 12–15 | Up to KSh 10M | 5–10 days |
| Stima SACCO | 10–14 | Up to KSh 5M | 3–7 days |
| Hazina SACCO | 11–13 | Up to KSh 3M | 7–14 days |
| Jitegemee SACCO | 8–12 | Up to KSh 500K | 2–5 days |
Terms
- Membership required
- Guarantors often accepted instead of collateral
- Dividend payouts reduce effective loan cost
- Ideal for SMEs, traders, and informal businesses
3. County-Based Loan Programs
Overview
Several counties offer subsidized loans to local entrepreneurs through trade departments or youth/women funds.
Examples
- Uasin Gishu County: Business loans up to KSh 500,000 with interest rates as low as 8%
- Kiambu County: SME loans via Jitihada Fund, targeting youth and women
- Mombasa County: Tourism-linked business grants and revolving funds
- Kakamega County: Agriculture-focused loans with flexible repayment
Terms
- Loan sizes: KSh 50,000 to KSh 1 million
- Repayment: 6–24 months
- Approval: 2–4 weeks, depending on vetting and training
- Collateral: Often waived for registered groups
4. Digital and Microfinance Loans
Overview
Digital lenders offer fast, unsecured loans via mobile apps and USSD platforms.
Examples
- Equitel Eazzy Business Loan: Up to KSh 3 million, disbursed within 24 hours
- Branch, Tala, Pezesha: Microloans for traders and gig workers
- Fundis App: Loans for artisans and construction workers
Terms
- Interest rates: 15–25% annually
- Repayment: 1–12 months
- Approval: Instant to 48 hours
- Collateral: Not required
Final Comparison Snapshot
| Provider Type | Interest Rate (%) | Loan Size Range | Approval Time | Best For |
|---|---|---|---|---|
| Commercial Banks | 13–20 | KSh 100K–50M | 2–14 days | Established SMEs, expansion |
| SACCOs | 8–15 | KSh 50K–10M | 3–10 days | Traders, informal businesses |
| County Programs | 8–12 | KSh 50K–1M | 2–4 weeks | Local startups, youth groups |
| Digital Lenders | 15–25 | KSh 1K–3M | Instant–2 days | Microbusinesses, gig workers |
Final Thoughts
In 2025, Kenyan entrepreneurs can choose from a wide range of business loans tailored to their size, sector, and location. Whether you need fast digital credit, SACCO flexibility, or county support, comparing interest rates and approval timelines is key to making the right choice.
