Clear the hurdles
Lenders and investors reject for predictable reasons: thin cash coverage, missing collateral, governance gaps, tax non-compliance. Identify the deal-killers before you submit, not after.
What this step covers
- DSCR check: prove the cash flow comfortably covers the proposed debt.
- Compliance check: KRA status, statutory filings, corporate records.
- Document checklist: financials, contracts, leases, and ID/KYC pack ready to go.
The detail
The most common deal-killers — and how to fix them
| Killer | Fix |
|---|---|
| DSCR below 1.3 | Restructure debt term, reduce ask, or wait a quarter to improve cash flow |
| KRA tax compliance certificate not current | File outstanding returns and clear arrears before applying |
| Customer concentration > 40% | Diversify or accept a smaller facility against the concentrated revenue |
| No collateral | Look at asset-based lenders, IFC SME guarantees, or invoice discounting |
| Missing statutory filings (NSSF, SHIF) | Catch up and pay penalties — usually KES 5–50k total |
| Personal CRB listing | Resolve the listing, get the clearance certificate (KES 2,200), wait the cooling period |
Document pack lenders consistently request
- Certificate of Incorporation / BN, CR12, KRA PIN
- Tax compliance certificate (download from iTax)
- 6–12 months bank statements
- Audited accounts (if turnover > KES 50M) or management accounts
- Board resolution authorising borrowing
- IDs and KRA PINs of all directors and signatories
- Proof of address (utility bill or lease)
- Use of funds and repayment plan
Frequently asked
What DSCR do banks actually look for in Kenya?+
Most commercial banks require Debt-Service-Coverage-Ratio above 1.3–1.5. DFIs and impact lenders sometimes flex down to 1.2 with covenants.
How do I check my CRB status?+
Free annual report at metropol.co.ke or transunionafrica.com using your ID + KRA PIN. Resolve any listings before applying.
The information in this guide is provided for general guidance only and is subject to change. Fees, timelines, and regulatory requirements in Kenya are updated regularly. Before acting, please confirm details with the relevant authority (KRA, eCitizen, BRS, county government, or other regulator) or speak with a qualified MyBiashara advisor. MyBiashara is not liable for decisions made solely on the basis of this content.
