Best Car Financing Options in Kenya (2025 Guide)

 

Best Car Financing Options in Kenya (2025 Guide)

Buying a car in Kenya can feel like a massive financial leap — especially in 2025 where prices continue to rise. But the good news? You don’t need to pay the full amount upfront. Whether you're looking to buy a new or used car, there are flexible car financing options available.

In this Code & Clutch guide, we break down the most popular and accessible car financing solutions in Kenya today.

---

What is Car Financing?

Car financing is a way to buy a car without paying the full price at once. You either:

• Borrow money from a bank or SACCO, or

• Lease or get a car on hire purchase

You repay monthly (with interest) over a period — usually 12 to 60 months.

---

1. Bank Loans

Most Kenyan banks offer car loans at competitive rates. Here’s what to expect:

Top Banks Offering Car Loans:

• Equity Bank

• NCBA

• Co-operative Bank

• Absa

• Stanbic

Key Features:

• Loan limit: Up to 90% of car value

• Tenure: 12–60 months

• Interest rate: 13%–16% p.a. (reducing balance)

• Processing fees apply

Pros:

• Lower interest rates than informal lenders

• Ideal for new or slightly used vehicles

Cons:

• Strict credit scoring

• Collateral or salary account might be required

---

2. SACCO Car Financing

SACCOs provide affordable car loans, especially to salaried members and small business owners.

Popular SACCOs Offering Car Loans:

• Stima SACCO

• Mwalimu National

• Kenya Police SACCO

• Harambee SACCO

Features:

• Lower interest rates (as low as 12%)

• Up to 3x your savings

• Flexible repayment plans

Pros:

• Great for members with consistent contributions

• Personal relationships with members

Cons:

• Must be an active member

• Takes time to build loan eligibility

---

3. Hire Purchase (HP)

This is a popular option at car yards and dealerships in Kenya.

How It Works:

• You pay a deposit (20%–40%)

• Drive the car immediately

• Repay monthly (including interest)

• Car becomes yours after the final payment

Popular Dealers with HP Options:

• Toyota Kenya

• CarMax EA

• Kenya Car Bazaar

• Urban Drive

Pros:

• No bank or SACCO needed

• Faster approval

Cons:

• Higher total cost than bank loan

• Car belongs to the dealer until full payment

---

4. Car Import Financing

Want to import a car from Japan, UK, or Dubai? Financing options are available for imports too.

How It Works:

• Choose car + agree with dealer/importer

• Pay deposit (30–50%)

• Bank/SACCO/dealer pays balance

• Vehicle arrives in 6–10 weeks

Trusted Importers Offering Financing:

• SBT Japan (via local agents)

• Be Forward (via MHH International)

• Nairobi car importers on Ngong Road & Mombasa Rd

Pros:

• Access better car models overseas

• Spread cost over time

Cons:

• Risk if using unverified agents

• Exchange rate and duty may affect cost

---

5. Mobile-Based Car Loans

Some fintech companies now offer car financing via mobile apps.

Apps & Startups:

• MOGO Kenya

• Pezesha

• AsapCar

Features:

• Deposit as low as KES 50,000

• Fast approval (in 24–72 hours)

• Repayment via M-PESA

Pros:

• Ideal for boda, taxi, and low-budget cars

• No long paperwork

Cons:

• Higher interest

• Cars usually have tracking & immobilizers

---

6. Islamic Car Financing (Shariah-Compliant)

For Muslim clients, Islamic banks offer Murabaha agreements (no interest involved).

Key Providers:

• Gulf African Bank

• First Community Bank

How It Works:

• Bank buys the car

• Sells to you at a profit

• Pay in agreed monthly installments

Pros:

• Compliant with Islamic laws

Cons:

• Limited availability

---

Requirements for Car Financing in Kenya

✅ National ID or Passport
✅ KRA PIN
✅ Bank or M-PESA statements (3–6 months)
✅ Proof of income (Payslips, Business permits)
✅ Proforma Invoice (from dealer/importer)

Optional:

• Guarantors (for SACCOs)

• Logbook security (for used car financing)

---

What Type of Car Can You Finance?

Most institutions finance cars:

• Up to 8 years old (used cars)

• With genuine logbooks or import documents

• Worth between KES 500K – 6M

Some also finance:

• Motorbikes

• Commercial vans and pickups

• Electric and hybrid cars

---

Tips Before Applying for Car Financing

• ✅ Compare interest rates from 3+ institutions

• ✅ Check total repayment cost — not just monthly installment

• ✅ Ask if the loan includes insurance

• ✅ Read the fine print: penalties, repossession terms, etc.

• ✅ Make a bigger deposit to reduce interest paid

---

Final Thoughts

Car ownership in Kenya is more accessible than ever. With flexible financing options from banks, SACCOs, hire purchase dealers, and fintech apps — you can get behind the wheel faster in 2025.

Just ensure you understand the terms, work with trusted partners, and don’t overextend your monthly budget.

At Code & Clutch, we help you compare car loan options, review dealers, and give honest advice tailored for Kenyan drivers.

---

📧 Questions or need help financing your car?
connectkenyacars@gmail.com
📱 WhatsApp: 0717 423 659
🌍 Facebook: Connect Kenya Cars