Nairobi, April 28 -- Companies seeking capital are preferring private debt from non-bank investment vehicles compared to bank loans and equity investment by private equity and venture capital funds, attracted by more flexible lending terms.

Analysis by the African Private Capital Association shows that in 2025, private debt deals rose by 57 percent to 72 transactions on the continent, outpacing the growth of two percent for PE and venture capital deals.

David Owino, managing partner at Ascent Capital Advisors, told the Business Daily that while banks may offer businesses cheaper money, they are more rigid when it comes to repayment, even in times of heightened geopolitical risk that affects cash flow.

Private lenders, on the other hand...