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Concesssional Loans Kenya

Concesssional loans are the most favourable form of credit a borrower can find in the whole lending market. Concesssional terms (favourable terms) associated with this kind of loans include; 

  • Lower interest rates than Central Bank Rate (CBR) 
  • Longer loan repayment duration (over 30 years)
  • Easy possibility to adjust loan terms 
The CBR in Kenya is 8.25%. Any loan offer with favourable terms including an interest rate of below 2% in Kenya is concerned concessional. 

Examples of concessional loans in Kenya

World Bank

It's hard to find a lender in Kenya providing loans at an interest rate lower than 2% . Some of the concesssional loans in Kenya include; 

 1. Helb

Higher Education Loans Board (Helb) charges an interest rate of 4% for the higher educational loan, tvet loans and even the new afya elimu loan facility.

2. Kenya Mortgage Refinance Company (KMRC) 

This lender charges an interest rate if 5% for mortgage loans to builders and real estate companies.


In many cases concesssional loans are likely to be offered to the government. Many multinational lenders can provide the most favourable terms and the examples include; 
  • World Bank
  • International Monetary Fund (IMF)
  • African Development Bank (AfDB)
World Bank ,IMF and AfDB provide loans with a fixed interest rate of 1.75% and a repayment duration of up to 35 years.

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