List of Loans Offered By Tourism Finance Corporation In Kenya

This is a list of the types of loans offered by Tourism Finance Corporation (TFC). TFC is a corporate body that was established in 1965 through an Act of Parliament, Cap 382 of the Laws of Kenya.

The Corporation is a specialized Development Financial Institution (DFI), with the mandate of facilitating and providing affordable development funding and advisory services for long-term investment in Kenya’s tourism industry.

The Corporation provides funding for development of hotels, non-conventional tourism projects, restaurants, renewable energy projects, health Spas, entertainment centres, shopping malls, multiplexes and any other innovative tourist products.

Here is a list of loans offered by the Tourism Finance Corporation.

1. Asset Finance Facility

These are loans advanced to business for the acquisition of assets for tourism-related enterprises.

Eligibility

Moveable assets to be financed must be new.

Amount

The corporation will only finance a maximum of 80% of the pro-forms invoice value of the asset.

Repayment Period

Up to a maximum period of 4 years.

2. Development Loan

These are loans advanced for the development of new tourist facilities.

Eligibility

The client must meet equity participation of at least 30% of the project cost, of which 10% must be in liquid cash. In case the property on which the project will be developed is leased, the remaining term of the lease must not be less than ten years

Loan Period

The loan period will be availed for a term of 2/3 of the remaining lease term subject to a maximum period of ten years.

Amount

The corporation will finance up to a maximum of 70% of the total cost of the project subject to a maximum amount of Kshs 100, 000, 000.

Repayment Period

Up to a maximum period of 10 years.

3. Energy Efficiency Facility

These are loans advanced to tourism facilities to enable them to reduce the amount of energy required to provide products and services. This will enable the facilities to reduce costs of energy thus increasing revenues and make it possible to meet their obligations in servicing TFC loans.

Eligibility

The client must meet equity participation of at least 30% of the project cost, of which 10% must be in liquid cash.

Amount

The corporation will finance up to a maximum amount of Kshs. 100, 000, 000

4. Expansion And Refurbishment Facility

These are loans advanced for extension and refurbishment of existing tourist facilities.

Eligibility

The loans will be availed to enterprises that have been in existence for a period of not less than three years.

Amount

The corporation will finance up to a maximum of 70% of the total cost of the project and a maximum amount of Kshs 100, 000, 000

Repayment Period

Up to a maximum period of 10 years.

5. Working Capital Facility

These are loans advanced for working capital.

Eligibility

The loan will be availed to businesses that have been in existence for a period of not less than three years.

Amount

The amount available is a maximum of Kshs 10, 000, 000.

Repayment Period

Up to a maximum period of 5 years.

Lending Terms

The following fees are applicable to all loan facilities;

1. Appraisal Fee

The appraisal fee is charged at a rate of 1.5 % of the approved loan amount payable upon approval before disbursement. A minimum of Kshs 50, 000 will be applicable.

2. Commitment Fees

Commitment fees will be charged at a rate of 1% of the approved amount after acceptance on the loan offer. The commitment fee is payable before disbursement. All fees, once paid to the corporation are non-refundable.

3. Interest Rate

The interest charged is 11% per annum on reducing balance.

Tourism Finance Corporation Contacts

Location: Utalii House, Uhuru Highway, Nairobi

Contacts: +254 20 3224119, +254 20 3224115

Email: [email protected]

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