10 Most Expensive and Cheapest Lenders in Kenya


Most expensive Lenders in Kenya

Which is the most affordable bank to approach for a loans in Kenya? This is the first question each borrower asks themselves, family or friends. 

Although regulated by the Central Bank of Kenya (CBK) commercial banks and all other lenders are free to price their loans independently. 

In this regard, the same category of loans taken from,  for example Equity Bank will have a different cost compared to the same loans taken from KCB.

Kenya Bankers Association (KBA) created a platform (website and app) where the public can access, estimate the cost of loans provided by different banks in Kenya. The Cost of Credit website and the Cost of Credit Calculator App is where estimates can be accessed. 

What Constitutes the Cost Of Credit (Loans) 

When it comes to borrowing, people are concerned only about the interest rate the lenders charge for a given credit facility. 

Important notes ; The current Central Bak Rate (CBR) is at 7.00% . Lenders can charge anything above this rate. Most commercial banks charge an interest rate of around 13.00% per annum. 

However, in addition to the interest rate, there are other charges that lenders can choose to charge a borrower who,is asking for a loan. Here is the list ; 

  1. Legal Fees 
  2. Excise Duty
  3. Credit Life Insurance 
  4. Negotiation Fees
A lender is at liberty to charge all or just some of the fees listed above. Lenders who charge all fees are always expensive despite charging a lower interest rate. 

10 Most Expensive Lenders In Kenya 

According to estimates from the Cost of Credit platform, these are the most expensive lenders who will make a borrower pay more for the same amount of personal secured loan of kes 1million to be repaid in 12 months.

You'll notice that the top 10 most expensive lenders are the big commercial banks . This is because big banks charge all fees associated with taking  loan. 

Here is the list of the top most expensive lenders; 
  1. Absa Bank Kenya 
  2. Sidian Bank 
  3. Ecobank 
  4. Family Bank
  5. Standard Chartered Bank 
  6. Equity Bank 
  7. Mayfair Bank 
  8. Stanbic Bank
  9. Bank of Africa 
  10. Cooperative Bank 

10 Cheapest Lenders in Kenya 

The cheapest lenders are most small banks. Why? Because mostly small banks don't charge all the fees associated with taking a loan.

Here are the Cheapest Lenders in the country;
  1. Bank of Baroda
  2. KCB
  3. First Community Bank
  4. HF 
  5. Jamii Bora ( Kingdom Bank)
  6. Credit Bank
  7. Transnational Bank (Access Bank)
  8. Bank of India 
  9. Habib Bank ( DTB)
  10. M-Oriental Bank 


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