Lock in financing
Most Kenyan SME deals close with a 60/40 equity/debt stack. Sort financing in parallel with DD so you don't lose the deal to slow-moving capital.
Common stack
- Personal equity — your savings, family, friends
- Vendor financing — seller leaves 20–40% in the business, paid back from cashflow over 2–4 years
- Bank acquisition finance — KCB, Equity, NCBA, Stanbic all offer up to 70% LTV on solid targets
- DFI / impact debt — SBM, AfDB SME windows, GroFin for KES 50M–500M deals
- PE / search funds — for deals above KES 250M EBITDA
DSCR matters more than headline price
Lenders care about Debt Service Coverage Ratio. Target ≥ 1.5x — i.e. the business generates 1.5x the cash needed to service the loan. Use the free DSCR tool in the Tools section to model your specific deal.
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.
