Kenya Loan & Interest Calculator
Calculate monthly payments and total interest for personal loans, mobile loans, mortgages & more - Updated October 2025
?? Current Interest Rate Environment (October 2025)
CBK Central Bank Rate: 9.25% (down from 12.75% in 2024) - Banks are reducing lending rates
Average Commercial Bank Rate: 15.44% (down from 17.2% in late 2024)
Loan Details
Typical range: 9% - 23%
?? Current Bank Rates
* Rates as of October 2025. Actual rates may vary based on credit profile.
Kenya Loan Providers Comparison 2025 - Interest Rates & Terms
Compare interest rates, maximum loan amounts, and requirements across 14 major loan providers in Kenya. Updated October 2025 with current rates from banks and mobile lenders. For home financing, check our mortgage calculator, or explore SACCO savings for lower-interest borrowing options.
| Lender | Interest Rate | Min Amount | Max Amount | Max Term | Processing Fee | Approval Time |
|---|---|---|---|---|---|---|
| Premier Bank | 9.0% p.a. | KES 50,000 | KES 5,000,000 | 84 months | 1% of loan | 3-5 days |
| Access Bank | 11.37% p.a. | KES 30,000 | KES 3,000,000 | 60 months | 1.5% | 2-4 days |
| DTB (Diamond Trust Bank) | 12.39% p.a. | KES 50,000 | KES 5,000,000 | 72 months | 1% | 3-7 days |
| Consolidated Bank | 13.39% p.a. | KES 20,000 | KES 2,000,000 | 60 months | 2% | 5-7 days |
| Absa Bank | 13.5% p.a. | KES 50,000 | KES 4,000,000 | 72 months | 1.5% | 3-5 days |
| Co-operative Bank | 14.5% p.a. | KES 30,000 | KES 10,000,000 | 84 months | 1% | 2-3 days |
| KCB Bank | 14.6% p.a. | KES 50,000 | KES 8,000,000 | 72 months | 1% | 1-2 days |
| Equity Bank | 14.39% p.a. | KES 30,000 | KES 6,000,000 | 60 months | 1% | 1-3 days |
| Hustler Fund | 7.0% p.a. | KES 500 | KES 50,000 | 6 months | 0% (FREE) | Instant |
| KCB M-Pesa | 8.9% + 7.5% fee | KES 50 | KES 1,000,000 | 30 days | 7.5% + 1.5% excise | Instant |
| M-Shwari | 9.0% + 7.5% fee | KES 50 | KES 50,000 | 30 days | 7.5% + 1.5% excise | Instant |
| Branch | 10.0% p.a. | KES 250 | KES 70,000 | 365 days | 0% (FREE) | 5 minutes |
| Tala | 15.0% p.a. | KES 500 | KES 50,000 | 61 days | 0% (FREE) | Instant |
| Fuliza (M-Pesa Overdraft) | 1.083% per day | KES 100 | KES 100,000 | 30 days | 1% access fee | Instant |
?? Key Insights from Lender Comparison
- Cheapest Bank Loan: Premier Bank at 9.0% - Save KES 27,700 in interest vs. Standard Chartered (17.32%) on a KES 500K loan over 3 years!
- Best Mobile Loan: Hustler Fund at 7% with zero fees - Government-backed, up to KES 50,000 instantly
- Most Expensive: Fuliza charges 1.083% daily (395% APR) - Only use for 1-2 day emergencies
- Largest Amounts: Co-operative Bank and KCB offer up to KES 10M and KES 8M respectively for major investments
- Fastest Approval: All mobile loans are instant, while traditional banks take 1-7 days
Best Loans for Different Needs Kenya 2025
Real-world scenarios showing which loan provider offers the best value for specific needs - from emergencies to business expansion.
| Need | Amount | Best Lender | Rate | Monthly Payment | Why This Option |
|---|---|---|---|---|---|
| Emergency Medical | KES 50,000 | Hustler Fund / Branch | 7-10% | KES 2,100-2,400 | Instant approval, no documents required, low interest |
| School Fees (Primary/High School) | KES 80,000 | Premier Bank | 9% | KES 7,400 (12 months) | Lowest interest saves KES 3,500+ vs higher-rate banks |
| University/College Fees | KES 250,000 | Access Bank / DTB | 11-12% | KES 11,200 (24 months) | Competitive rate, fast approval (2-4 days), education-friendly |
| Small Business Start-up | KES 150,000 | Consolidated Bank / KCB | 13-14% | KES 5,100 (36 months) | Longer terms (up to 5 years) give business time to grow |
| Home Renovation | KES 500,000 | Premier Bank / Absa | 9-13.5% | KES 16,000 (36 months) | Low rate + longer term = affordable monthly payment |
| Wedding Expenses | KES 300,000 | Co-operative Bank / Equity | 14-14.5% | KES 10,300 (36 months) | Fast approval (1-3 days), flexible terms |
| Business Expansion (Equipment) | KES 2,000,000 | Co-operative Bank / KCB | 14-14.6% | KES 46,000 (60 months) | High loan limits (up to KES 10M), long terms spread cost |
| Quick Cash (1-3 days need) | KES 10,000 | Branch / Tala | 10-15% | KES 900-1,200 (30 days) | No fees, instant, no CRB check for first-timers |
?? Real Cost Comparison Example
Scenario: You need KES 500,000 for home renovation, paid over 36 months (3 years). Use our construction cost calculator to estimate renovation costs accurately.
The Difference: Choosing Premier Bank over Standard Chartered saves you KES 76,680 in interest! Always compare rates.
10 Costly Loan Mistakes Kenyans Make (And How to Avoid Them)
Learn from others' expensive mistakes. These common errors cost Kenyans thousands of shillings every year.
? Not Comparing Interest Rates Before Borrowing
The Mistake: Taking the first loan offer without shopping around for better rates.
The Cost: On a KES 500,000 loan over 3 years, the difference between 9% and 17% is KES 76,680 in extra interest!
? Solution: Compare at least 3-5 lenders using our calculator above. Premier Bank (9%), Access Bank (11.37%), and DTB (12.39%) are currently the cheapest.
? Ignoring Mobile Loan Fees (They're NOT 9%!)
The Mistake: Thinking M-Shwari's "9% interest" means it's cheap - forgetting the 7.5% facility fee + 1.5% excise duty.
The Reality: Total cost is actually 18% for a 30-day loan, which equals 216% APR!
Example: Borrow KES 10,000 for 30 days from M-Shwari = Pay back KES 11,800 (vs. KES 10,075 from a bank)
? Solution: Use Hustler Fund (7%, zero fees) or Branch (10%, zero fees) for small emergencies. Save mobile loans for TRUE 1-day emergencies only.
? Defaulting on Small Mobile Loans (CRB Blacklist!)
The Mistake: Thinking "It's only KES 2,000, I'll pay later" and defaulting on mobile loans.
The Cost: Any default over KES 1,000 gets reported to CRB and stays on your record for 5 YEARS! This blocks you from mortgages, car loans, credit cards.
Real Example: James defaulted on KES 5,000 Tala loan in 2023. In 2025, he was denied a KES 3M mortgage to buy a house because of his CRB score. Use our mortgage calculator to plan home purchases properly.
? Solution: Always pay mobile loans on time. If struggling, call the lender - most offer payment plans. Protecting your CRB is worth MORE than the loan amount.
? Choosing Longer Loan Terms to "Reduce Monthly Payments"
The Mistake: Taking a 5-year loan instead of 3 years because the monthly payment is lower.
The Hidden Cost: You pay MUCH MORE in total interest over the longer period.
Example: KES 500,000 loan at 14% interest
� 3 years (36 months): Monthly = KES 17,118 | Total Interest = KES 116,250
� 5 years (60 months): Monthly = KES 11,628 | Total Interest = KES 197,680
Longer term costs KES 81,430 MORE in interest!
? Solution: Choose the SHORTEST term you can comfortably afford. Every extra month costs you money.
? Not Reading the Loan Agreement (Hidden Fees Trap)
The Mistake: Signing loan documents without reading the fine print about processing fees, insurance, and penalties.
Hidden Fees to Watch For:
- Processing Fee: 1-2% of loan (KES 5,000-10,000 on KES 500K loan)
- Loan Insurance: 0.5-2% of loan amount
- Early Repayment Penalty: Some banks charge 3-5% if you clear loan early!
- Late Payment Fees: KES 2,000-5,000 per missed payment + extra interest
- Annual Fees: Some banks charge yearly "maintenance" fees
? Solution: Ask for Total Cost of Credit (TCC) upfront. This shows ALL fees. Compare TCC between lenders, not just interest rate.
? Borrowing for Depreciating Assets (Cars, Phones, Weddings)
The Mistake: Taking a 4-year loan for a car that loses 30% of its value in year 1.
The Trap: You end up owing MORE than the asset is worth ("negative equity")
Example:
� Buy car for KES 1.5M with 4-year loan at 15%
� After 1 year: Car worth KES 1.05M (30% drop), but you still owe KES 1.2M!
� If you want to sell, you must pay bank KES 150K from your pocket
? Solution: Only borrow for APPRECIATING assets (land, education, business). Use our land area calculator and stamp duty calculator when buying property. Pay cash for cars/electronics or use shorter 1-2 year loans max.
? Using Fuliza as a "Loan" (395% APR!)
The Mistake: Treating Fuliza like a loan and carrying a balance for weeks.
The Math: Fuliza charges 1.083% PER DAY + 1% access fee
Example: Fuliza KES 5,000 for 30 days
� Access fee (1%): KES 50
� Daily interest (1.083% � 30 days): KES 1,625
Total cost: KES 1,675 (33.5% for 30 days = 395% APR!)
Same KES 5,000 from Hustler Fund (7% p.a.) = only KES 30 interest!
? Solution: Fuliza is for 1-2 DAY emergencies only (buying urgent medication, etc.). Clear it within 48 hours. For longer needs, use Hustler Fund or Branch.
? Not Negotiating Your Interest Rate
The Mistake: Accepting the bank's first rate offer without negotiating.
The Truth: Interest rates are often negotiable, especially if you have good credit, existing relationship with bank, or are borrowing large amounts.
Negotiation Tactics That Work:
- "I have an offer from [competitor bank] at X%": Banks will often match or beat competitor rates
- Show good CRB score: Score above 700 = stronger negotiating position
- Salary domiciling: Offer to move your salary account = 1-2% rate reduction
- Larger down payment: 30% down instead of 10% = lower rate
- Professional membership: LSK, IEK, medical council members often get 0.5-1% discount
? Solution: Always ask "Is this your best rate?" and mention you're comparing offers. Even 1% reduction saves thousands.
? Taking Multiple Mobile Loans at Once (Debt Spiral)
The Mistake: Borrowing from Tala to pay M-Shwari, then borrowing from Branch to pay Tala - creating a debt spiral.
How It Happens:
Week 1: Borrow KES 10,000 from M-Shwari at 18% = Owe KES 11,800 in 30 days
Week 4: Can't pay, borrow KES 12,000 from Tala at 15% to clear M-Shwari
Week 6: Owe Tala KES 13,800, borrow KES 14,000 from Branch
6 weeks later: Original KES 10,000 need has become KES 16,000 debt + destroyed CRB!
? Solution: NEVER borrow to pay a loan. If struggling, call lender for payment plan. Consider debt consolidation loan from bank at lower rate (9-14% vs mobile 100%+ APR). Alternatively, join a SACCO for lower-interest emergency loans.
? Borrowing Without a Repayment Plan
The Mistake: Taking a loan thinking "I'll figure it out later" without calculating if you can afford monthly payments.
The Rule: Your TOTAL monthly loan repayments should not exceed 40% of your net salary. Use our PAYE calculator to know your exact take-home pay.
Example of Safe Borrowing:
� Net Salary: KES 80,000/month
� Maximum for loans: KES 32,000/month (40%)
� Existing car loan: KES 18,000/month
� Can afford new loan: KES 14,000/month max
At 14% interest, 3 years = Can borrow up to KES 400,000
? Solution: Before borrowing, use our calculator above to see monthly payment. Ask yourself: "Can I comfortably pay this for X months?" If not, borrow less or choose longer term.
? Smart Borrowing Checklist - Do This Every Time
- ?Compare rates from at least 3 lenders
- ?Use calculator to check monthly payment fits your budget
- ?Read loan agreement and ask about ALL fees
- ?Check your CRB score before applying
- ?Try to negotiate rate (show competitor offers)
- ?Choose shortest term you can afford
- ?Set up auto-payment to never miss due date
- ?Keep loan payments under 40% of net salary
- ?Only borrow for needs, not wants
- ?Have emergency fund = 3 months of loan payments
Related Financial Calculators
Explore other Kenya financial calculators
How to Get the Best Loan in Kenya
Compare Rates
Use calculator to compare interest rates from different banks and lenders
Check Your CRB
Good credit score = lower interest rates. Check via Metropol or TransUnion
Negotiate Terms
Shorter loan term = less interest paid overall (but higher monthly payment)
Read Fine Print
Check for hidden fees: processing, insurance, early repayment penalties
?? Pro Tip: Premier Bank currently offers the lowest personal loan rate at 9% (as of October 2025). Always compare at least 3 lenders before deciding.
Frequently Asked Questions About Loans in Kenya
What is the best loan rate in Kenya for 2025??
As of October 2025, loan interest rates in Kenya vary by lender and loan type:
- Premier Bank: 9.0% p.a. (lowest)
- Access Bank: 11.37% p.a.
- DTB (Diamond Trust Bank): 12.39% p.a.
- Consolidated Bank: 13.39% p.a.
- Absa Bank: 13.5% p.a.
Mobile Loans (Fast but Higher APR):
- Hustler Fund: 7% (government-backed, lowest)
- KCB M-Pesa: 8.9% + 7.5% facility fee
- M-Shwari: 9% + 7.5% facility fee
- Branch: 10% (no fees, up to 1 year term)
Source: Central Bank of Kenya
How do I qualify for a loan in Kenya??
Basic Requirements for Bank Loans:
- Age: 18-65 years (some banks up to 70)
- KRA PIN: Mandatory tax identification
- National ID/Passport: Valid identification
- Bank account: Active account (preferably salary account)
- Proof of income: Payslips (3-6 months), bank statements
- Good CRB score: No loan defaults or arrears
- Minimum income: Varies (usually KES 20,000-30,000/month for salaried)
For Self-Employed/Business Owners:
- Business registration documents (Certificate of Registration)
- Business bank statements (6-12 months)
- Tax returns or iTax compliance certificate
- Business permits/licenses
?? Tip: Mobile loans (M-Shwari, Tala, Branch) have easier requirements - just M-Pesa history. Good for emergencies but higher interest.
What's the difference between reducing balance and flat rate loans??
Understanding this difference can save you thousands of shillings!
? Reducing Balance (Better Deal)
- Interest calculated on REMAINING balance each month
- As you repay, balance reduces, so interest also reduces
- Most banks use this method
- Example: KES 100,000 at 15% for 1 year = Total interest ~KES 8,300
? Flat Rate (More Expensive)
- Interest calculated on ORIGINAL amount for entire period
- You pay same interest even as balance reduces
- Some SACCOs and informal lenders use this
- Example: KES 100,000 at 15% flat for 1 year = Total interest KES 15,000
The Difference: Same loan (KES 100K, 15%, 1 year) costs KES 6,700 MORE with flat rate! Always ask lender which method they use.
What is CRB and how does it affect my loan application??
CRB (Credit Reference Bureau) tracks your credit history in Kenya. There are 3 licensed CRBs:
- Metropol CRB: metropol.co.ke
- TransUnion Kenya: transunion.co.ke
- Creditinfo CRB: creditinfo.co.ke
How CRB Affects Your Loan:
| CRB Score | Rating | Effect on Loan |
|---|---|---|
| 700-850 | Excellent | Best rates, fast approval |
| 650-699 | Good | Good rates, likely approval |
| 600-649 | Fair | Higher rates, may need guarantor |
| Below 600 | Poor | Difficult to get loans, very high rates |
How to Check Your CRB Score:
- Visit any CRB website above
- Register with your ID number and phone
- Pay KES 50-200 for credit report
- Download your full credit history
Good News: Since December 2020, defaulted mobile loans under KES 1,000 are NOT reported to CRB. But larger defaults stay on record for 5 years.
Where can I get official loan and banking information??
Official Regulatory Bodies:
- ??Central Bank of Kenya (CBK): centralbank.go.ke
Interest rates, approved banks list, financial reports
- ??Kenya Bankers Association: kba.co.ke
Banking sector information, consumer protection
- ??Kenya Deposit Insurance Corporation: kdic.go.ke
Protects deposits up to KES 500,000 if bank fails
- ??SASRA (SACCO Regulator): sasra.go.ke
SACCO licensing, supervision, and compliance
Consumer Protection:
- ??? Report unfair lending: CBK Consumer Help Desk - 0711 087 000
- ?? Email complaints: consumerfeedback@centralbank.go.ke
- ?? Download CBK Mobile App for instant complaints
Important Disclaimer
General Information Only: This calculator provides estimates based on publicly available information and standard rates. Results are for informational and educational purposes only and should not be considered as professional financial, legal, or tax advice.
Accuracy and Updates: While we strive to maintain accurate and up-to-date information using official sources including Kenya Revenue Authority (KRA), National Social Security Fund (NSSF), Social Health Insurance Fund (SHIF), and other relevant government agencies, rates and regulations may change. Always verify current rates with official sources.
Seek Professional Advice: For specific tax planning, salary negotiations, financial decisions, or legal matters, please consult with qualified professionals such as certified accountants, tax advisors, financial planners, or legal practitioners who can consider your individual circumstances.
No Liability: Top Calculator and its operators accept no liability for any loss, damage, or inconvenience arising from the use of this calculator or reliance on its results. Users are responsible for verifying all calculations and information with official sources before making financial decisions.
Official Sources: For authoritative information, please refer to:
- Kenya Revenue Authority (KRA) - www.kra.go.ke
- National Social Security Fund - www.nssfkenya.co.ke
- Social Health Insurance Fund - www.sha.go.ke
Last updated: January 2025. This disclaimer applies to all calculators on Top Calculator.
Interest rates updated October 2025 from CBK and commercial banks
For current rates, visit www.centralbank.go.ke