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So, you have finally decided to invest in a car for business or personal use, but unfortunately, you’re short on cash. What do you do? That’s where car financing comes in.

Car financing is basically a financial product that enables you to purchase a car by only placing a small deposit. You will typically need to find a company that can loan you the funds. You’ll then be expected to repay these funds over time in accordance with the terms and conditions of the lender.

The whole business of taking loans can be complicated but to make things easier we have researched the top car financing providers in Kenya to provide you with the information you’ll need to make a solid decision.

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The Best Car Loan Companies in Kenya

The list below highlights the leading car financing companies in the country currently. The list is made up of non-bank lenders, top-tier banks as well as SACCOs.

Car Loan Lender	Category	Interest Rates (pa)*
MOGO	Non-Bank	36%
HAKKI	Non-Bank	23%
WATU	Non-Bank	27.5%
Safaricom Sacco	SACCO	12% reducing balance
Stima Sacco	SACCO	12.75% reducing balance
Waumini Sacco	SACCO	14% reducing balance
NCBA	Bank	18.1% reducing balance
Diamond Trust Bank	Bank	16% reducing balance
Equity Bank of Kenya	Bank	14.6% to 21% (risk-based)
Standard Chartered	Bank	16%
ABSA Bank Kenya	Bank	18.5%

Interest rates vary from time to time depending on CBK regulations and the bank’s internal decisions. This data was compiled in September 2023.

PS: Non-bank lenders are the best choice for anyone who is still building his hustle and doesn’t have much in collateral or bank statements. SACCOs are good for those with limited savings potential and are good at building networks with potential guarantors. Banks are good for those with consistent income and/or collateral.

Best Car Financing Companies

While popular banks and SACCOs offer low-interest rates on loans, they may not be the best choice for most people, especially considering the financial hardships in our country currently.

Online lenders tend to create friendlier packages for those who would otherwise be considered “high-risk borrowers.” However, they also tend to charge higher interest rates to make up for the fact that they also face a greater risk of default.

To find the best car loan for you, we suggest you first evaluate your unique needs and financial capabilities so you can approach the right financier. With that in mind, here is a closer look at some top lenders with the best rates, covering each of the three categories namely non-bank, SACCOs, and banks.

Non-Bank Car Financing Companies

These can also be referred to as online lenders. They are called non-bank because the CBK does not license them to function as fully-fledged banking institutions. That said, they are duly licensed to provide financial services i.e. Logbook loans, Emergency Loans, insurance premium financing among other financial services.

MOGO: Best Non-Bank Auto Loan Provider in Kenya

MOGO is a financial institution with its roots in Europe. The company has been operational in Kenya since 2018 and is part of a larger group of companies called Eleving Group.

One thing we really love about MOGO is its excellent customer support. They are always attentive and always willing to create quality financial products for borrowers.

Their car financing product enables you to borrow as much as KES2,500,000 and repay the same in as much as 60 months.

To put things into perspective, if you borrow KES1,000,000 from them for a car you’ll need a 200K deposit. Should you choose to repay the loan in 36 months (just an example) you’ll be required to part with Ksh54,000 per month. This translates to about 3% per month or 36% per annum.

With MOGO you get high-quality and hassle-free services. Above all, they have a low-price guarantee to ensure you’re getting nothing but the best value for your money.

Mogo Car Financing

Mogo finances cars of any age, make, or model. The best part? You only need to make a deposit of 20% and have the option to repay over a period of up to 5 years.

It’s a hassle-free way to get behind the wheel of the car you’ve always wanted. Let us help you make it happen!

Simply fill out the form below and one of our sales representatives will get in touch with you shortly.

Please provide a phone number that you can be reached with on call. By filling out the form below, you consent to receive a call from a Mogo agent who will follow up on your request.

HAKKI Africa

HAKKI is yet another non-bank institution that supports car financing. The company has its roots in Japan.

Their structure is a bit different from that of MOGO in that they require you to exclusively source the car from Japan via a company called Beforward. The problem with that is that it limits your options, plus you have to wait for days for the car to arrive.

The good news is that HAKKI offers some highly competitive financial products. You’re only required to part with a minimum upfront of 10% or KES100,000.

The company’s car loans are well-priced with interest rates averaging at around 23% per annum or 1.9% per month.

WATU Credit

Watu Credit was founded in 2015. Since then, the Fin-Tech company has grown in leaps and bounds to become one of the largest financial services providers to those at the bottom of the pyramid in Kenya.

We absolutely love the fact that WATU has a flexible approach to car financing. To begin with, the company provides up to 80% financing on your preferred car’s market value. That is to say, if you are buying a Toyota Probox valued at KES1,300,000, they finance you to the tune of KES1,040,000.

With WATU the cost of the loan is 2.5% per month or roughly 30% per annum. As such a KES1,000,000 borrowed for a period of 36 months will cost you roughly about KES51,000 per month – and this is inclusive of loan processing fees and insurance costs.

SACCOs That Can Finance Your Car Ownership Dreams

Non-bank financial institutions are great but their loans are stiffly priced. Therefore, if you have some saving potential and can wait for a few months, SACCOs might be the better choice for you. Here are some excellent SACCOs that issue car loans in Kenya.

Safaricom SACCO – Best SACCO For Car Loans in Kenya

Safaricom SACCO was formed in 2001 and initially comprised membership drawn from Safaricom PLC’s staff. Over time, the SACCO grew and started allowing members of the public to join; meaning today, you and I are free to join!

With Safaricom SACCO you need to save for at least 6 months after which they will loan you 3 times your savings. So, for a KES1,000,000 car, you’ll need to save at least KES333,000 within that time or roughly KES55,500 per month.

The good thing about the Safaricom SACCO loan is that no guarantors are needed. The car’s logbook is used as security.

You can get car loans for as cheap as 12% per annum on reducing balance from Safaricom SACCO.

The SACCO has a really good and responsive customer support team. What’s more, their loans are the best-priced from our research so far.

Stima SACCO

Originally created to cater to the needs of employees of what was then known as East Africa Power & Lightning Company, Stima SACCO has been around since the 70s. Where were you in 1974?

Well, today the SACCO is open to all. Therefore, if you’re willing to save for some time before you eventually acquire your car, this can be a good place to stash your money.

You only need to be a member of the SACCO for 3 months to qualify for borrowing. Their loans cost 12.75% per annum on reducing balance. You can borrow up to 3 times your savings and repay in up to 36 months.

Also, if you don’t have a guarantor you can go with the self-guarantee option where you place collateral against your borrowing.

We’d rate the customer support at Stima SACCO as above average as they responded to all our queries in under 24 hours.

Waumini SACCO

Waumini SACCO is one of the oldest Savings and Credit Cooperative Society’s in the country having been registered in 1980. Associated with the Catholic church, the SACCO is open to members of all religious faiths.

With Waumini, one is required to save for 6 months and then borrow 4 times their savings. So, you only need to save KES250,000 to access a KES1,000,000 loan from this SACCO. And since this is asset financing, the SACCO can choose to use the car’s logbook as collateral or require you to provide a guarantor.

Their loans are priced from 14% per annum on a reducing balance method.

That said, Waumini could do a better job in terms of responding to client queries on time. Otherwise, they are a great SACCO with really good products.

Banks with Friendly Auto Financing Deals

Banks have always been the go-to place for people looking to access loans to pursue their dreams. Provided you meet all their requirements, they can be great to work with because they are usually run by the best professionals in the game. Some banks you might need to consider when researching the best car financing companies in Kenya include:

NCBA Bank

Formed after a merger between the NIC and CBA banks, NCBA is one of the largest banks in Kenya in terms of asset base. The bank is highly friendly and receptive to lenders unlike some of the bigger names which treat those from the informal sectors with contempt.

You can conveniently secure a car financing loan with this bank as long as you can provide bank statements or MPESA statements that prove your ability to repay the loan.

The reason why this is one of the best car loans in Kenya is that you’re given a friendly interest rate of 18.1% on reducing balance. This means the loan cost declines with time as you “eat out” the loan with constant repayments.

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Diamond Trust Bank

This top-tier bank ranks well among the best car financing companies in Kenya for many reasons. First off, DTB Kenya has a long history of trust having been around since 1946. Yup, you read that right.

Another thing that makes DTB a good financier is its innovative products which are meant to cater to lenders of diverse risk profiles.

It is worth noting that this bank works with Toyota Kenya. So, if you’re thinking of getting a brand-new car (with zero mileage), DTB can help you with that.

Those looking to import pre-owned cars can also benefit from the lender’s “Hire Purchase” program with the prevailing interest rates being 16% on reducing balance.

Equity Bank of Kenya

Few banking institutions are as trusted as Equity Bank of Kenya. The bank which grew from a small coffee SACCO somewhere in central Kenya has grown to become one of the biggest brands in our household.

If you’re thinking of taking a car loan, chances are that you have found yourself considering walking into one of their branches given that they have them in plenty across the nation.

Well, unlike other banks, Equity Bank advances loans on a risk-profile-based approach. As of late September 2023, their lowest interest rate (meant for low-risk borrowers) was 14.69%. Based on your risk profile, the rate could go to as high as 21% pa.

You, however, need to physically walk into one of their branches for them to determine your risk profile and accept/reject your request.

Standard Chartered Bank

Also known as Stan Chart in short, this is a subsidiary of a British financial company based out of London in the United Kingdom. The bank offers all manner of financial products key among them being car financing whose rate as of September 2023 stood at 16% per annum.

The bank finances your car purchase up to 80% meaning you have to raise the extra 20% through your own means. However, for those in business, one needs to have been in business for at least 3 years to qualify.

ABSA Bank Kenya

Formerly known as Barclays Bank of Kenya, ABSA Kenya has been seeking to cut a niche for itself as a bank that uplifts entrepreneurs – and MSMEs in particular. To position itself as such, it has a friendly car loan product that is based on an 18.5% per annum rate that is based on a reducing balance approach.

A reducing balance approach means the more you repay the loan the smaller the repayments become as the principal amount decreases. Indeed, this is a good product for those in small businesses or medium to low-paying jobs.

How To Choose the Right Car Loan Company

Car finance companies come in all shapes, colors, and sizes. To find the perfect match for your needs you need to consider a myriad of factors among them the following:

Your Risk Profile

You probably won’t need to worry about this if you’re employed in a blue-chip company or the government and receiving a fat paycheck. But if you’re out there struggling to make a name for yourself, it is important to consider your ability to repay the loan before approaching any lender.

If you’re starting out from scratch with nothing but the willingness to work hard, you might be better off working with non-bank lenders like MOGO and WATU.

On the other hand, if you have been in business for quite some time and have some consistent inflows of capital, you might be able to get cheaper loans from either SACCOs or banks based on your preferences.

Interest Rate

Interest rates represent the cost you’ll have to pay for borrowing the money. The higher the interest rate, the higher the cost of capital.

So, it is always a good idea to aim for the financial institution offering the lowest interest rates possible.

Also, if the rate can be on reducing balance that would even be better.

Other Charges

Other than the interest rates, some institutions place a myriad of charges on their products. These include things like loan processing fees, negotiation fees, and so forth. Be sure to ask about these in advance before signing on the dotted line.

Customer Friendliness

Last but not least, you want to approach a lending organization that treats you with dignity and attends to your queries promptly. You don’t want to be stuck in an unhappy union for years on end.

Remember if it looks like a duck, swims like a duck, quacks like a duck, then it probably is a duck. Read the signs and avoid bad lenders the minute you spot them.

Conclusion

Finding the best car financing deals in Kenya requires more than just basic knowledge. Luckily for you, we have done the heavy lifting leaving you to focus on building a good relationship with your lender of choice. That way, you can comfortably find the car of your dreams and enjoy cruising down the roads confidently and conveniently.

After you get that dream car though, do not forget to take care of it so that you can enjoy it in peace. Some of the ways you can do this are by installing a tracking device from a reputable dealer, acquiring comprehensive insurance for your car as well as installing an anti-theft device, you can also install a dash camera if finances allow.