Development Bank of Kenya Loans, Eligibility & Rates

DBK Chama Loan

DBK Chama Loan targets investment groups like chamas, offering up to Ksh 250 million for short, medium, or long-term business ventures. Eligible applicants include registered chamas, sole proprietorships, and partnerships focused on collective growth. Repayment periods flex to match project cash flows, making it ideal for community-driven enterprises in Kenya.​

This loan supports group investments in real estate, agriculture, or trade, emphasizing financial inclusion for informal sectors. Requirements typically involve group registration, business plan, and collateral like land or guarantees. Rates align with Kenya's Central Bank benchmarks, often around 13-16% EBRR plus margin, though exact figures depend on risk assessment.​

Biashara Lift Loan

Biashara Lift Loan provides secured financing up to Ksh 250 million for sole proprietorships, partnerships, companies, NGOs, Saccos, and learning institutions. It funds short, medium, and long-term goals such as equipment purchase or expansion. Flexible repayment suits seasonal businesses common in Nairobi and rural Kenya.​

Applicants must demonstrate viable operations, with collateral like property or assets required. This product drives SME growth, aligning with Kenya's Vision 2030 for economic development. Interest rates are market-driven, typically 14-15% effective, influenced by the Electronic Banking Rate (EBRR).​

Short-term Loans & Overdrafts

Short-term Loans and Overdrafts cater to immediate working capital needs for established businesses. They bridge cash flow gaps for inventory or payroll, with quick approval processes. Eligibility focuses on proven revenue streams and banking history with DBK.​

These facilities roll over as needed, minimizing disruption. Rates are competitive, often pegged to CBR plus a spread of 2-4%, making them cost-effective for traders in Nairobi's markets. Maximum tenors span 12 months.​

Standby Overdraft

Standby Overdraft offers a safety net for businesses, drawable up to an approved limit without full utilization penalties. It's suited for enterprises with variable inflows, like agribusinesses in Kenyan counties. Eligibility requires audited accounts and security.​

This product activates only when needed, reducing interest costs. Rates mirror overdraft standards at 15-18%, calculated daily on used amounts. It's popular among Nairobi exporters facing payment delays.​

Revolving Overdraft

Revolving Overdraft provides ongoing access to funds, repaid and redrawn cyclically for operational continuity. Targeted at growing SMEs, it demands strong financials and collateral. Businesses in manufacturing or retail qualify easily.​

Limits renew upon repayment, supporting scalability. Interest hovers at 14-17% annually, with fees for facility setup. This aids Kenya's informal sector in scaling without repeated applications.​

Project Loans

Project Loans fund medium to long-term ventures, structured in Kenya Shillings or foreign currency for unique business needs. Ideal for infrastructure or industrial setups, eligibility hinges on detailed feasibility studies. DBK tailors terms to project viability.​

These loans span 5-15 years, financing expansions in priority sectors like agriculture and manufacturing. Rates vary by funding source, often 12-16% for local currency, lower for concessional foreign funds. They bolster Kenya's development agenda.​

Development Bank of Kenya (DBK), established to foster economic growth, prioritizes developmental projects over pure profit. Unlike commercial banks like Equity or KCB with rates around 14-15%, DBK offers tailored terms for underserved sectors. Loans emphasize sustainability, requiring environmental impact assessments for large projects.​

Eligibility across products mandates Kenyan residency, stable income or revenue, and creditworthiness via CRB checks. Age limits apply (21-65), with documents like PIN, ID, business registration, and financial statements essential. Collateral is standard, though guarantees suffice for smaller loans.​

Application starts online via www.devbank.com or branches in Nairobi, Mombasa, and Kisumu. Submit proposals, await appraisal (2-4 weeks), and secure funding post-approval. Digital tools speed processes amid Kenya's fintech rise.​

Rates tie to the Central Bank Rate (CBR) at about 13% in 2026, plus margins for risk. DBK's developmental mandate yields competitive edges over peers like NCBA (15.34%). Watch for EBRR fluctuations impacting EMIs.​

For SMEs in Nairobi, DBK bridges financing gaps where commercial loans falter on collateral. Chama and Biashara products empower grassroots ventures, vital in Kenya's 40% informal economy. Always compute affordability using bank calculators.

Consult DBK directly for personalized quotes, as terms evolve with policy shifts. Pair loans with grants from bodies like KDC for optimal funding. This strategic mix accelerates business trajectories in competitive markets