How Car Financing Works in Kenya
Most car financing in Kenya falls into three buckets: bank asset finance, SACCO loans, and logbook loans. Asset finance and SACCO loans are used to buy a car (the car or your savings secure the loan); logbook loans borrow against a car you already own. You typically put down a deposit and repay the balance with interest over a fixed term.
The right option depends on whether you're buying or borrowing against a car you own, and on the rate, deposit, and term you can get.
The main ways to finance a car
- Bank asset finance — the bank pays for the car and you repay over a term; the car is the security. Usually needs a deposit.
- SACCO loan — borrow against your savings/shares, often at competitive rates if you're a member.
- Logbook loan — borrow against a car you already own; the lender registers a charge on the logbook until you repay.
What lenders look at
- Your income and ability to repay.
- The deposit you can put down — a bigger deposit means a smaller loan and lower repayments.
- The car's age and value (especially for asset finance).
- Your credit history.
How to choose
Compare the total cost — interest rate, fees, deposit, and term — not just the monthly figure. A longer term lowers the monthly payment but costs more overall. SACCO loans are often cheapest for members; banks suit larger amounts. Treat a logbook loan as borrowing against a car you own, not a way to buy one. Always confirm current rates and terms directly with the lender, as these change.
Related
Frequently asked questions
What are the options for financing a car in Kenya?
The main options are bank asset finance (the bank buys the car, you repay over a term), SACCO loans (borrowing against your savings/shares), and logbook loans (borrowing against a car you already own). Asset finance and SACCO loans are used to buy; logbook loans borrow against an existing car.
How much deposit do I need to finance a car in Kenya?
It varies by lender and the car, but a deposit is typically required for asset finance — a larger deposit reduces your loan and monthly repayments. Confirm the specific deposit with the lender.
Is a logbook loan a good way to buy a car?
No. A logbook loan borrows against a car you already own, not a way to buy one. If you buy a car that still has a logbook loan on it, the lender retains rights over it — always check for a financier on the logbook before buying.
By Garisea Research Team. Published 12 June 2026. This guide is general information, not legal or financial advice — verify current requirements and prices before you buy.