Equity Bank’s Pamoja Investment Loan is designed to support Kenya’s micro-entrepreneurial groups, popularly known as chamas. The product targets men and women above 18 years who are engaged in small micro-enterprises and are members of registered groups formed for asset acquisition. With eligibility for groups of 12 to 40 members, the loan provides financing for movable assets, land and plot purchases, property releases, and micro-housing projects.
It is tailored for groups that have already demonstrated financial discipline by operating for at least one year within a formal financial institution and are committed to joint savings and guarantees. With a loan ceiling of up to KES 10 million and repayment terms extending to 120 months, the Pamoja Investment Loan offers some of the most generous terms available for community-based borrowers in Kenya.
What sets this product apart is its group-based approach to lending. Instead of relying heavily on individual collateral, the loan leverages collective guarantees, group savings, and the assets being financed. This reduces barriers to access, especially for members who may not own significant personal assets.
Equity also integrates training, financial education, and dedicated relationship managers into the offering, ensuring that borrowers receive not just funding but also the guidance necessary to manage it sustainably. Groups can even access up to three concurrent loans, offering flexibility for members pursuing multiple investment opportunities.
The benefits of this loan are significant. Large loan amounts and extended repayment periods ease the pressure on group cash flows, making it suitable for high-value projects that require long-term financing. The integration of support services, including entrepreneurship training and advisory support adds an extra layer of value, helping groups use borrowed funds more effectively. Equity Bank’s robust mobile and digital platforms also ensure that groups can manage repayments and approvals conveniently, with 24/7 access to banking services.
However, the loan is not without its limitations. Interest rates are tied to the Equity Bank Reference Rate (EBRR) plus a margin, and the bank does not publish exact figures for this product. Borrowers must refer to the Credit Tariff Guide or consult branch officers to obtain a clear breakdown of rates, fees, and repayment schedules. Loan application and credit evaluation charges (up to 5%) as well as restructuring fees for amended terms also apply. Beyond pricing, strict eligibility requirements may limit access to newer or informal groups, while the group guarantee model means members carry shared liability in the event of defaults.
When compared to other group financing products, such as Equity’s Boresha Biashara Loan, the differences become clear. While Boresha Biashara is capped at KES 5 million with a repayment horizon of up to 36 months, Pamoja Investment offers double the loan size and up to 10 years for repayment. This makes Boresha Biashara better suited for short- to medium-term business expansion needs, while Pamoja Investment remains the go-to option for long-term, asset-focused investments.
In terms of usability, the Pamoja Investment Loan aligns well with Kenya’s strong culture of group savings and joint investment. Members benefit from collective accountability and shared vision, though the administrative process ranging from group formation and registration to training and ongoing management can feel overwhelming at first. The mobile experience is seamless, with Equity’s digital banking platforms enabling groups to approve transactions and track progress in real time. Customer support is another standout, with relationship managers offering continuous guidance to borrowers, a feature rarely seen in traditional loan products.
Overall, the Pamoja Investment Loan is a strong product for well-established chamas and micro-enterprise groups with a long-term vision for asset growth. Its strengths lie in the generous loan limits, long repayment period, digital accessibility, and the inclusion of training and advisory services. Its weaknesses revolve around opaque pricing, eligibility barriers for new groups, and the risks inherent in collective liability. For established groups seeking to finance significant projects such as land acquisition or housing developments, it provides one of the most comprehensive solutions in the market.
On balance, Equity Bank’s Pamoja Investment Loan earns a 4 out of 5-star rating. It is highly recommended for groups ready to take their investment ambitions to the next level, but prospective borrowers should seek detailed information on interest rates and fees at their nearest Equity Bank branch before signing up.
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