You’ve grown your biashara from the ground up. Now with loyal customers, a product people love, and plans to expand, you’re ready for the next step — getting a loan to boost your business. But there’s that one thing standing in your way: the business plan. For many Kenyan entrepreneurs, just hearing those words can be scary. It sounds complicated, full of jargon, and worst of all, you worry it might end with a rejection from the bank.
Don’t worry. This guide breaks it down in simple language, just for Kenyan businesses. Forget those generic templates. Here, you’ll see exactly what banks like KCB, Equity, and even SACCOs want to see in your plan so you can walk in confident and walk out with funding.
Why Your Business Plan Matters So Much
In Kenya, banks and lenders use your business plan to figure out how risky it is to give you money. They want to see that you’re serious, that your business can survive, and most importantly, that you’ll be able to pay them back. A strong business plan changes the conversation from “Please lend me money” to “Let’s partner on this opportunity.”
What to Include in Your Business Plan
1. Executive Summary
This is the short pitch that gives the loan officer a snapshot of your entire plan. Most times, they’ll read this first — or even only this. Keep it sharp, about one page. Explain what your business does, what opportunity you’ve seen, how much money you need, and what makes you stand out.
- Business Name & Structure: e.g., Mama Tasha Bakery, registered as a sole proprietorship.
- The Opportunity: e.g., More people in Kitengela want fresh bread and cakes without going to Nairobi.
- Funding Request: e.g., Looking for KES 600,000 to expand.
- Use of Funds: e.g., Buying a bigger oven and hiring one more baker.
- Competitive Edge: e.g., We do home deliveries via boda and accept M-Pesa — very few bakeries here do that.
2. Company Description
This is where you formally introduce your business. Go beyond just saying what you do — also include your location, when you started, your business registration number, KRA PIN, and your county permit. Kenyan lenders love seeing that you’re fully compliant.
3. Market Analysis
Here, prove that there’s actually a demand for what you’re selling. Describe your customers. Are they college students in Thika? Are they boda riders in Kisumu? Also talk about your competitors — even small ones like mama mboga across the street.
- Pricing: Are you cheaper, same or more expensive than them?
- Quality: Is your product better? How?
- Payment Options: Do you take M-Pesa? Many small competitors don’t.
4. Organisation & Management
Tell them why they should trust you. List your experience. If you’ve been running this biashara for five years or even managed a chama successfully, put it here. Also list any key team members and their roles.
5. Products & Services
Describe exactly what you’re selling. Use plain English or Swahili if needed. Also show how you set your prices in KES. If you accept M-Pesa via Till or Paybill, mention it — it makes you look more formal and organized.
6. Marketing & Sales Strategy
Explain how people will hear about you. This could be posters at the market, WhatsApp broadcasts, Facebook posts, or even just word of mouth. Also mention how you keep track of sales — like with an M-Pesa statement, cash book or simple POS system.
7. Financial Projections
This is usually the most important section. Prepare simple 3-year projections. Focus on:
- Cash flow (shows how you’ll repay the loan)
- Profit & Loss
- Break-even point
Make sure these numbers are realistic. Don’t inflate them too much.
8. Funding Request
State exactly how much you want and how you’ll spend it. A simple table works great:
- New Equipment: Big oven for KES 400,000 (quote from supplier attached)
- Stock: Flour & sugar for KES 150,000 (invoice attached)
- Working Capital: Rent & salaries for KES 200,000
- Total: KES 750,000
Adapting Your Plan for Different Lenders
Each lender looks for slightly different things:
- Big banks (like KCB, Equity): Want low risk. Show them your business has been stable, has assets or collateral, and clean records.
- SME banks: Look for growth potential. Emphasize your market and how you’ll expand.
- Digital lenders: Care most about your M-Pesa or bank statements. If they see consistent daily transactions, they’ll be happy.
FAQs for Kenyan Business Owners
How long should my business plan be? Around 10 to 15 pages is perfect for most SME loans under KES 5 million. Keep it clear and straight to the point.
Are M-Pesa statements enough proof of income? Absolutely. In Kenya, they’re one of the best ways to show your sales. Many lenders actually prefer them.
What’s more important — a unique idea or solid financials? For getting a loan, strong, realistic numbers matter more. Banks care most about repayment.
What if I have a bad CRB record? Be honest. Explain what happened and show that it’s cleared (attach your CRB clearance certificate). Then highlight your current positive cash flows.
Final Word
Writing a business plan doesn’t have to be hard or intimidating. Keep it practical, tell your story clearly, and support it with real numbers. That’s how you convince lenders here in Kenya that your biashara is worth backing.