A new KES 20 million financing facility could help Kenya’s creative entrepreneurs move from surviving one project at a time to building more stable and sustainable businesses.
NCBA and HEVA Fund have launched the Start-Up Incubator financing facility, the first product under their strategic partnership aimed at bringing financing tailored to the creative economy into mainstream banking.
The facility will provide individuals and registered small and medium-sized enterprises operating across the creative industry value chain with access to financing based on their business needs and plans.
Borrowers will access the facility at an interest rate of 9 per cent, with repayment periods of up to six months. Crucially, no security will be required, removing one of the major barriers that can prevent young and growing creative businesses from accessing formal credit.
The financing is designed to help entrepreneurs address immediate business needs, take advantage of new opportunities and strengthen their operations as they work towards building commercially sustainable ventures.
For creatives whose businesses often depend on projects, contracts and irregular income streams, access to short-term capital can make the difference between securing an opportunity and watching it pass.
NCBA Group Managing Director John Gachora said the product reflects the bank’s commitment to expanding financial solutions that enable creative entrepreneurs to contribute more fully to Kenya’s economic growth.
“We are excited to see this product come to life after months of collaboration with HEVA Fund. It reflects our commitment to supporting creative entrepreneurs with accessible financing that helps turn ideas into sustainable businesses, create employment and contribute to the growth of Kenya’s creative economy. Through this product, we are empowering the ambitions of many creatives and demonstrating the power of our Ubuntu strategy in unlocking opportunity, building resilience and creating lasting impact for creative entrepreneurs, their families and the wider economy.
The facility will be deployed through a shared-risk financing approach and is the first in a wider range of products planned under the partnership.
Future financing solutions will include Event Financing, Invoice Discounting, LPO Financing and Working Capital Financing, giving creative businesses options designed around their cash-flow requirements and stages of growth.
HEVA Fund Managing Partner Wakiuru Njuguna said the partnership shows what is possible when creative economy expertise and commercial banking capabilities come together.
“We have spent the last 12 years at HEVA proving that creative businesses are commercially viable and investable. That work has never been just about financing individual businesses; it has been about building a financial ecosystem that recognises the unique nature of the creative economy and develops financial products that meet its needs. This partnership with NCBA marks an important step in bringing that vision into mainstream commercial banking, combining HEVA’s sector expertise with NCBA’s scale to expand access to capital and accelerate the growth of Kenya’s creative economy.”
The creative economy spans industries including film, music, fashion, photography, design, publishing and digital content, with businesses often requiring financing for equipment, production, marketing, staffing and expansion.
By offering credit without security and with a relatively short repayment period, the new facility seeks to give entrepreneurs greater flexibility as they pursue business opportunities.