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.
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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
Interest rates updated October 2025 from CBK and commercial banks
For current rates, visit www.centralbank.go.ke