NCBA Group and HEVA Fund have launched a KES 20 million ($154,000) financing facility for startups and small businesses in Kenya’s creative economy, offering capital without collateral at a 9% interest rate.
The Start-Up Incubator facility is the first financing product introduced under the organizations’ strategic partnership. It targets individuals and registered small and medium-sized enterprises operating across the creative industry value chain.
Borrowers can access short-term financing with repayment periods of up to six months. The facility also includes insurance, with the partners positioning the product as a way for creative entrepreneurs to fund immediate business needs, pursue new opportunities and strengthen their operations without providing security.
“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,” NCBA Group Managing Director John Gachora said.
The facility is being deployed through a shared-risk financing model, with NCBA and HEVA planning additional products aimed at addressing different cash-flow needs among creative businesses.
The planned products include event financing, invoice discounting, LPO financing and working-capital financing.
Wakiuru Njuguna, managing partner at HEVA, said the partnership is intended to bring financing designed specifically for creative businesses into mainstream banking.
“We have spent the last 12 years at HEVA proving that creative businesses are commercially viable and investable,” Njuguna said. “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.”
HEVA said it has mobilized more than $45 million since 2013 and developed financing instruments for businesses operating in fashion, digital content, music, gaming, performing and visual arts, film and live events.
The partnership combines NCBA’s banking infrastructure and regional reach with HEVA’s experience financing creative enterprises, as financial institutions increasingly look to develop products for businesses whose revenue cycles and assets differ from traditional sectors.
NCBA operates in Kenya, Uganda, Tanzania, Rwanda and Côte d’Ivoire and provides banking services to corporate, institutional, SME and consumer customers.
The launch gives startups and other creative businesses access to a dedicated pool of capital while laying the groundwork for a broader range of financing products tied to their operating and growth needs.