Every normal human being occasionally finds themselves needing to raise quick cash. The need may be serious such as is the case with a medical emergency or it may be something as frivolous as wanting to throw a bash. Whatever the situation, these practical tips will help you raise money fast in Kenya.
This works well for salaried employees. A salary advance is one of the easiest ways to raise money fast. Unless your employer has a policy that discourages salary advances, this should be your first option when you need to raise money fast.
Get a Loan
Salaried and non-salaried individuals can also look into the option of getting a loan. There are five different sources of loans for most Kenyans:
- Friends & family – borrow from friends and family. This is usually fast, cheap and hassle free especially if you are in good standing with the targeted friends and/or family.
- Sacco – if you belong to a Sacco, you can apply for an emergency loan (if provided by the Sacco). Many Saccos provide emergency loans for issues such as medical emergencies and school fees.
- Unsecured bank loan – salaried individuals can apply for unsecured loans at their bank. Kenyan banks usually process such loans within a week provided your account is in good standing and you provide all documentation requested.
- Secured bank loan – Non salaried individuals have the option of applying for a bank loan secured by household goods. Take note that other types of security e.g. vehicle log book, land title, shares etc. would allow you to borrow more funds but the processing period would be much longer.
- Borrow from a ‘shylock’ – in Kenyan colloquial terminology, a ‘shylock’ is an individual (and increasingly companies) in the business of lending money at high interest rates for repayment over a short period of time usually a month but in some cases up to six months. The security is usually a post dated cheque and a guarantor(s). This is one of the fastest loans you can get in Kenya.
There are two ways to fund raise:
- Harambee – a traditional harambee, if well organized, can raise a large amount of cash within a few weeks
- Fundraising for business or worthy cause – if you intend to raise money fast over a few short weeks, you could also look into the possibility of using global crowd sourcing websites such as Indiegogo and Rocket Hub. Kickstarter is also good though it is not yet open to a global audience. Crowd sourcing websites leverage on the power of ‘haba na haba hujaza kibaba’. In essence, you create a campaign and promote it on social media and people from all over the world fund with whatever they can afford. Many people globally have raised loads of cash in a few short weeks to fund a wide range of issues running the gamut from cancer research to paying college fees. It is definitely worth a shot.
Tips and Warnings
Be careful when you borrow money from a ‘shylock’. Some charge interest rates as high as 40% a month. Above all, never give a ‘shylock’ your vehicle log book or other physical security unless it is a matter of life and death. Hundreds of Kenyans have harrowing tales regarding their assets being sold even after paying as much as four times the principal amount.