Kenya has been experiencing unemployment disaster for decades now, which has left many Kenyans looking for alternative ways to earn their living. The only choice now left is to start a self investment through projects which is still a hard rock to break since financing the projects calls for a lot of resources.
For one to undertake a project in Kenya, it is required to evaluate all the benefits and risks associated with it. Feasibility study is also key activity prior to commencement of the projects.
While undertaking a feasibility study it’s always necessary for one evaluate the best available financing alternatives within Kenya. This is because the capital to start up a business project is always termed as the backbone and the survival of the business mainly still depends on the capital employed.
Many people look for banks to finance their projects just because banks only ask for collateral, but they fail to understand that banks rates directly depend on the inflationary rate of the country such that, you may get a loan at a rate of 12% but after two months time find yourself repaying the same loan at a rate of 20%. This dynamic shift of rates may badly affect your business mainly at the early stages.
I am not sure if you will agree with me; I always recommend SACCO’s and micro financing bodies in financing start up and small projects in Kenya. The reason has been that these associations maintain their fixed rates regardless of the economic inflation in the country. The only challenges you may face is that for you to qualify to get a loan from any SACCO, you must be a member of the same SACCO and not just a member but active member running active account with them. You will also be required to get guarantors mainly three to four of them. SACCO’s always encourage their members to also encourage or come with their friends in order to avoid the issue of some members lacking guarantors.
As they say, “successful journey starts with a simple successful step” I encourage young people to register with micro-financing bodies or SACCO Associations in Kenya as early as possible.