Banks, SACCOs and asset financiers in Kenya lend against vehicles. You usually pay a deposit, the lender holds an interest in the logbook until the loan is cleared, and you repay monthly with interest. Compare the total repayable and not just the monthly payment.
Where to get finance
- Banks, often through their asset finance teams.
- SACCOs, which may offer members different terms.
- Specialist vehicle financiers.
- Logbook loans, which borrow against a car you already own and can be expensive.
What lenders usually ask for
- ID, KRA PIN and recent bank or M-Pesa statements.
- Proof of income, or business records if you are self-employed.
- A valuation of the car and a pro-forma invoice from the seller.
- Comprehensive insurance for the length of the loan.
How to compare offers
- Ask for the total amount you will repay, including all fees.
- Check if the interest rate is fixed or can change.
- Ask about early repayment charges.
- Find out what happens if you miss a payment, including repossession.
- Include insurance, tracking and any other required costs in your budget.
Financing through gari_me
gari_me is not a lender and does not arrange loans. You deal directly with your lender and the seller, and you should never pay a deposit to secure a loan you have not seen in writing.
Common questions
- Can I finance a used car in Kenya?
- Yes, many lenders finance used cars, though they may limit the age of the car. Ask about their limits before you commit to a vehicle.
- Who holds the logbook during a car loan?
- The lender is normally recorded on the logbook until the loan is cleared. Ask how and when it is released once you finish paying.
Read next: Cars under KES 1 million · Car insurance explained
This guide is general information, not financial, legal or insurance advice. Rates and rules change, so confirm them with the relevant provider or authority before you commit.