What does the Stimulus fund aim to achieve?

The Stimulus Fund is a special program anchored on the Coast Tourism Recovery Strategy, Tourism Blueprint 2030 and Tourism Taskforce Policy 2015. The program aim is to stimulate the recovery of tourism related businesses provided as soft loans.

Who is eligible to apply?

In order to cover a range of establishments in the tourism space the following categories are proposed.

  • 10-20 employees
  • 20-50 employees
  • Over 50 employees

Businesses applying for the stimulus package must have been in existence for at least 3 years and provide audited accounts for last 3 years. 

Are there parties or industries in the tourism sector that are not eligible?

Yes. We do not fund the following parties:

  1. Minors
  2. Bankrupt personsPersons of unsound mind
  3. Buy offs/Refinancing
  4. Any company with a petition for winding up or notice for receivership has been served or auction proceedings had been instituted
  5. Persons adversely listed by a CRB; Exemptions will be granted upon satisfactory proof of clearance of the outstanding loan and an objective determination of the subject client’s credit worthiness
  6. Persons whose sources of funds cannot be conclusively determined in line with the Anti-Money Laundering Act
  7. Facilities that were not operational and or closed before COVID-19 pandemic
  8. Businesses carrying out gaming and Gambling activities
  9. Applicants requesting for buy offs of existing facilities
  10. Persons convicted of a criminal offence or economic crimes
  11. Businesses manufacturing weapons and are involved in war-related activities,
  12. Businesses in gambling and betting sectors,
  13. Brothels and related businesses

How do I apply for the facility?

All applications will be submitted to the Corporation’s offices in online application portal developed by the organization. No hardcopy application will be accepted and as such all communication will be online https:// fund.tourismfinance.go.ke. CRM queries on application shall be resolved via email within the 21 DAYS at md@tourismfinance.go.ke.

The Applications must be submitted within the stipulated 21 days effective after the date of opening via the online application portal that has been developed.

Advertisement outlining loan application procedures will be available in the electronic, print and online media inviting interested parties to apply for stimulus package within the specified period.

Do I need to attach any documents in my application?

Yes. In addition to the completed application form, you will be required to attach the following:

  1. Copy of completed Stimulus Application Form
  2. Copy of Business Plan/Feasibility study
  3. Copy of the Certificate of Incorporation
  4. Copy of owner’s national ID & PIN numbers of all Partners/Directors
  5. Copy of the Company’s PIN Certificate
  6. Copy of the TRA registration certificate
  7. Copy of KRA compliance certificate of the applicants and all its directors/partners
  8. Tourism levy compliance Certificate
  9. Copy of business registration (where applicable)
  10. Copy of Memorandum and Articles of Association & CR -12 (for registered companies)
  11. Copy of Partnership Deed (where applicable)
  12. Copies of BQs, invoices and quotations accompanied by work plans and implementation plans
  13. CVS of the Professionals overseeing the project
  14. Copy of the Company’s latest Annual Return where applicable.
  15. Board/Partnership Resolution to borrow.
  16. Bank statements for the last one (1) year
  17. Audited accounts for at least three (3) years (Year ending 2019 backwards) and Certified Management Accounts for the un-audited period for projects that are already in operation (Before 31 December 2019 and Between April2020 to June 2020).
  18. Copy of the loan security document free of encumbrances with a mortgage value of at least 120% of the loan amount.
  19. A valuation report carried out within the last 3 years/ if not provide indicative value

Green Energy financing

  1. Valid Quotation for the item being purchased
  2. Copies of 6 Months electricity and water bills
  3. Warranty of the product.

How long will it take to process my application?

Your application will be processed in approximately 60 DAYS after expiry of the application window

How do I know if my application is successful or not?

Applicants will receive a letter of offer notifying the customer or a letter of decline for the unsuccessful application.

How will successful applicants receive the disbursement?

Disbursement is through Corporation's registered bank by way of RTGS as per the client's bank details.

What is the maximum amount one can borrow?

The soft loans will be advanced to a maximum of Kes. 50 million per applicant.

Can I use the funds for any other purpose?

No. These are soft loans solely advanced to tourism related Enterprises for refurbishment and restructuring of business operations (renewable energy, Costs related to Covid-19 Compliance and in specific capital costs, Renewable Energy and Energy efficiency costs, Water harvesting and water desalination ,Bio-digester)

How much is the application fee?

The application is free of charge

What other costs are related to the loan

The other costs related include Legal fees, Valuation fees and insurance costs

How much interest is charged on the loan?

The interest rate is 5% per annum on reducing balance.

Is the loan repayable and for how long?

Yes, the loan is repayable, the duration of the loan is up to a maximum ten (10) years.

How do I repay the loan?

Repayment will be done to the Corporations loan account as advised upon acceptance of the offer.

Do you offer a grace period to repay the loan?

Yes, the Corporation offers a Moratorium period of up to 12 months on both principal and interest payments.

Do I need to place any collateral?

Yes. A collateral that is free of encumbrances will be charged to the Corporation

What kind of collateral is acceptable to the Corporation?

Acceptable securities comprise of first legal charge either on free hold or Commercial and Residential properties with an unexpired lease term of more than twenty-five-(25) years, however, Agricultural properties WILL NOT be accepted as security.

What other securities can I avail to secure the loan?

The only acceptable securities comprise of first legal charge either on free hold or Commercial and Residential properties with an unexpired lease term of more than twenty-five-(25) years.

Do I need to sign any agreement?

Yes. Successful applicants will be required to dully execute the letter of offer.

Do I qualify for another loan after repayment?

Yes. There is a possibility to qualify for an additional loan after repayment, however, this will not be under the stimulus fund but normal loan funds depending on the past performance.

I am not in business; can I apply for the facility?

The facility is only available to tourism related businesses that have been in operation for the last three years.

I closed my business; can I apply for the facility?

Yes, if you closed and can proof that it was as a result of the pandemic

I want to start a business; can I apply for the facility?

No. The facility is only available to businesses that have been existence for at least three (3) years prior to the COVID-19 pandemic

Am I required to put in my own funds to qualify for the stimulus package?

No Equity participation as financing is at 100%.

Do you prepare Business plans for customers?

No. However the Corporation has a list of prequalified consultants who can prepare the business plan at a cost.

Do I need to provide another security if I have an existing loan with TFC?

No, a further shall be done depending on the security adequacy to cover the two loans.

Do you allow sharing of securities?

No, the corporation will only accept security free of encumbrances.