The Best Car Financing Options in Kenya and How to Qualify

Buying a car in Kenya can be expensive, but car financing options make it possible to own a vehicle without paying the full amount upfront. Whether you’re looking for a brand-new car or a second-hand import, various financing options can help you get behind the wheel.

This guide explores the best car financing options in Kenya and the qualification requirements for each.

1. Bank Car Loans

Banks offer secured or unsecured car loans to individuals and businesses looking to buy a vehicle.

Features:

✔ Can finance up to 90% of the car’s value.
✔ Repayment periods range from 12 months to 5 years.
✔ Interest rates vary between 12% and 15% per annum, depending on the bank.

Requirements to Qualify:

Be 18 years or older with a stable source of income.
Provide bank statements (last 6 months).
Have a valid Kenyan ID or passport.
Present payslips (for employed individuals) or business records (for self-employed).
Maintain a good credit score with CRB clearance.

Popular Banks Offering Car Loans:

Equity Bank – Offers asset financing for both new and used cars.
Co-operative Bank – Provides flexible repayment terms.
NCBA Bank – Specializes in financing imported vehicles.

Find out how to buy a second-hand car in Kenya.

2. SACCO Car Financing

SACCOs (Savings and Credit Cooperative Societies) provide affordable car loans with lower interest rates than banks.

Features:

✔ Interest rates range from 8% to 12% per annum.
✔ Flexible repayment terms (up to 6 years).
✔ Some SACCOs allow zero deposit financing for members.

Requirements to Qualify:

Be an active SACCO member for at least 6 months.
Have consistent savings or shares in the SACCO.
Provide salary slips or business income proof.
Show CRB clearance and good repayment history.

Popular SACCOs Offering Car Financing:

Mwalimu National SACCO – Offers car loans for teachers.
Stima SACCO – Best for salaried professionals.
Unaitas SACCO – Finances both new and used cars.

3. Car Dealer and In-House Financing

Many car dealers in Kenya offer financing plans through partnerships with banks or independent financiers.

Features:

✔ Some dealers offer zero deposit car financing.
✔ Interest rates range from 12% to 18% per annum.
✔ Immediate vehicle ownership upon approval.

Requirements to Qualify:

Provide a valid Kenyan ID and KRA PIN.
Present proof of stable income.
Pay the agreed deposit (if required).
Sign a financing agreement with the dealer.

Popular Car Dealerships Offering Financing:

Toyota Kenya – Offers financing for brand-new Toyota models.
Maridady Motors – Known for affordable second-hand car financing.
Autochek Kenya – Specializes in flexible repayment plans for used cars.

Find out how to choose a reliable mechanic before buying a used car.

4. Asset Financing Companies

Specialized asset financing institutions provide car loans with customized repayment plans for both personal and business vehicles.

Features:

✔ Can finance 100% of the car’s value.
✔ Faster approval process than traditional banks.
✔ Higher interest rates (between 14% and 20%).

Requirements to Qualify:

A valid national ID and KRA PIN.
Proof of consistent income (business or salary).
Provide bank statements (last 6 months).
Have a good credit history.

Popular Asset Financing Companies:

Mogo Kenya – Provides financing for boda bodas, matatus, and personal cars.
Maisha Microfinance – Specializes in loans for business vehicles.
Car & General Financing – Offers options for commercial vehicle owners.

5. Import Car Financing

If you’re importing a car from Japan, the UK, or Singapore, you can get financing through specialized lenders.

Features:

✔ Covers import duties, clearing fees, and purchase cost.
✔ Available for both new and second-hand imports.
✔ Loan amount based on vehicle valuation.

Requirements to Qualify:

A proforma invoice from an approved car exporter.
Import clearance documents.
Bank statements and proof of income.
10-30% deposit (depending on financier).

Popular Import Car Financing Companies:

NCBA Bank – Partners with local clearing agents.
I&M Bank – Specializes in financing high-end vehicle imports.
Autopax Limited – Helps clients finance direct car imports.

6. Logbook Loans (Using Your Car as Security)

If you already own a car, you can use your logbook as collateral to get a loan.

Features:

✔ Loan amounts up to 80% of your car’s value.
✔ Quick approval process (as fast as 24 hours).
✔ Higher interest rates (15% to 30% per annum).

Requirements to Qualify:

Own a fully registered car in your name.
Provide a valid logbook as security.
Have a steady source of income.

Popular Logbook Loan Providers:

Platinum Credit – Fast logbook loan approvals.
Mwananchi Credit – Offers loans up to 80% of car value.
FinCredit Limited – Specializes in business logbook loans.

How to Improve Your Chances of Qualifying for Car Financing

✔ Maintain a Good Credit Score – Avoid CRB blacklisting by repaying past loans on time.
✔ Have a Stable Income – Lenders prefer borrowers with consistent income sources.
✔ Save for a Deposit – Some lenders require 10% to 30% down payment.
✔ Choose a Car Within Your Budget – Loan approval depends on your repayment ability.
✔ Provide All Required Documents – Missing paperwork delays the approval process.

Conclusion

Car financing in Kenya provides multiple options for buying a vehicle, whether through banks, SACCOs, dealers, asset financing companies, or import financing providers. The key to getting the best deal is comparing interest rates, understanding repayment terms, and ensuring you qualify for the loan.

For expert advice on car servicing, insurance, and financing support, visit Automotive Doctor Motor Garage.

Need help with car financing? Book a consultation today.