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Kua Ventures provides funding for small businesses (SMEs) operating in Kenya. Visit our funding page to check if Kua Ventures provides what you are looking for, is the kind of investor you want to have in your business and if your business fits our criteria for investment. If yes, click “Apply Here” to embark on the application process. If you are not 100% sure if your business fits the criteria but are still interested in finding out, we suggest that you still apply and a few notes or comments for our investment team to review.
You can email us at info@kuaventures.org or call +254114780649. Our team will respond to your queries.
Absolutely! We will frequently present enterprises with options that we believe fit the needs of the business and discuss the pros and cons of each option.
We provide innovative finance solutions customized to the business needs, with a general preference for debt instruments.
Straight debt – Loan repaid in fixed monthly installments, for a determined period of time. We provide investments over a number of disbursements, according to milestones. The interest rate is calculated on a reducing balance, to be paid over a period of three to six years. Depending on the business model and needs, we may discuss a grace period. Generally, we do require collateral to secure the full amount of the investment. We may consider a small portion of the loan being unsecured, depending on the risk profile and impact of the business. We are always innovating in looking for collateral options that can address the needs and constraints of Small and Growing Businesses. Generally, we have a preference for business assets, and we also consider personal assets or guarantees. We also discuss with the business ways to structure the investment (e.g. in installments) that may reduce the need for collateral.
Asset financing – Loan repaid in fixed monthly installments, for a determined period of time, for the purchase of an asset which is generally co-owned by Kua Ventures and the company. For businesses that don’t have collateral and are planning on making capital investments, this can be an option to consider.
Convertible notes – Loan that can be converted into equity when it matures, typically in 24 months. If it’s not converted, the loan is due according to an amortization schedule of typically another 24 months.
Revenue-share – loan repaid in monthly payments as a percentage of the business gross revenue until reaching a multiple of the investment (e.g. for an investment of Kes5,000,000, the business pays 3-5% of the prior month gross revenue, until reaching a multiple of 2-3X, that is, Kes10,000,000. This option is ideal for businesses with fluctuating revenue patterns (seasons) and more predictable margins. This option doesn’t have a maturity date as it will be fully paid once the multiple is reached independently of the timelines. As an incentive for repayment within a predictable timeframe, we may offer a discount in the multiple (e.g.if the above loan is paid within 36 months, we only require a multiple of 1.5X).
Interest rates can be calculated using two methods: flat rate or reducing balance. Flat rate means that the rate is calculated on the amount disbursed (e.g. for an interest rate of 12% per annum or 1% per month, a flat rate on a Kes5,000,000 loan would be Kes50,000 per month, every month until maturity, that is, when the loan is fully paid; a reducing balance rate means would be calculated on the outstanding principal amount e.g. on the first month it would be 1% of the outstanding balance (Kes5,000,000) so Kes50,000, but then on the second month it would be slightly less than that as you would have paid some of the principal in the first installment. In sum, with a reduced balance you pay a lot less than with the same rate flat, and the more you pay in each installment the less interest you will pay after that.
We only invest in businesses with a track-record of at least three years and a minimum of two years of audited financials. If your business doesn’t qualify for these criteria, but you believe there is strong alignment to Kua Ventures mission, we still encourage you to apply. Once you apply, you will receive any communications of additional calls for applications, which criteria may be expanded from the current.
We require two years of audited financials to consider your business for investment. If your business has been incorporated more recently, but has been operating under a different entity/business name/trademark, we may consider that historic data as we assess your business. We will also consider management accounts while the business completes its audit.
We rarely invest in businesses with less than Kes5m in annual turnover. If your business doesn’t qualify for these criteria, but does for the remaining criteria and you believe there is strong alignment to Kua Ventures mission, we still encourage you to apply. Once you apply, you will receive any communications of additional calls for applications, which criteria may be expanded from the current.
We are planning to multiply our investments 10x over the next few years, so we don’t expect to be limited by the funds available to invest. However, we do have very strict Investment Criteria and quite a comprehensive Screening and Due Diligence processes, which make the process to receive an investment quite competitive.
The whole process highly depends on the business’ ability to provide the required documents. We have had Due Diligence processes take anywhere between 1 and more than 6 months, once complete financials have been received.
We invest across sectors and are open to support any business that fits within our funding criteria. We have a preference for sectors and businesses that can be strong job creators. We encourage you to check the “Our Portfolio” section on the website to see the current portfolio companies.
Kua Ventures does not have a deadline for its funding applications. All applications are reviewed on a rolling basis year in, year out.
Once you have submitted your application, our team will contact you with details of whether your application will proceed to the next stage. We endeavor to provide updates to all applicants on a rolling basis.
After investing in a business, we use a portion of the interest charged to provide coaching and community to our portfolio companies. This involves quarterly workshops, peer learning from other portfolio companies, access to networks of professionals, one-on-one pairing with a seasoned entrepreneur as mentor, as well as regular coaching from our team. For more details, check our website https://kuaventures.org/.
No, Kua Ventures typically invests in post-revenue businesses in Kenya. This means we look for businesses that have already launched and are generating some level of income. Our minimum threshold is Kes 5 million in annual turnover
We focus on businesses with a track record of sales because it allows us to assess their financial viability and potential for growth. This makes it more likely that our investment will create a positive social impact by supporting businesses that can create jobs and contribute to the alleviation of poverty.
While we rarely invest in businesses below the Kes 5 million mark, we do encourage applications from all mission-aligned businesses. If your business is a strong fit for our values but doesn’t meet the revenue threshold just yet, we recommend applying after you have attained the minimum threshold. Alternatively, we may keep your information on file for future consideration
Kua Ventures funds faith-based businesses across various sectors in East Africa and with a current focus in Kenya. We target SMEs that generate social impact alongside financial growth. This could encompass education, agriculture, clean energy, or even hospitality, as long as the business aligns with our mission.
We track various metrics aligned with our mission as a Christian investor. This includes creation of stables jobs, environmental sustainability, or improved livelihoods within communities served by the businesses in our portfolio.
A core part of our investment strategy is creating positive social change in East Africa. If you are a national of any of the East African countries but with a businesses operating in Kenya, we’d be happy to consider your application