6 Best Loans for Car Financing in Kenya Without Collateral & Their Features
In Kenya, especially in major towns like Nairobi and Mombasa, most men and even some women have entered the business of operating Bolt and Uber cars. About 75% of these individuals acquired them through bank loans and are now paying for them in installments. This is really good because it helps Kenyan drivers, as they are able to own a car and earn a living despite the high level of unemployment in society. It is not only for them; even anyone who needs a personal car, taxi, or matatu can acquire one through this financing, since good vehicles are usually expensive and many people do not have the full upfront amount.
The good news is that car financing loans without collateral are now easily accessible in Kenya. Banks, SACCOs, and private lenders now offer asset financing, meaning you do not need land title deeds or any other property as collateral.
This article, compiled through good research by the HavenKenya team, provides you with the 6 best car financing loan options in Kenya without collateral, how they work, their interest rates, and what you should check before applying.
What Is Car Financing Without Collateral?
As we had previously explained in the best business loan banks without collateral, it is the same here. Instead of asking for land, business assets, or a logbook, the lender uses the car you are buying as the security. If you fail to repay, the lender may repossess the vehicle.
The financing is easily accessible to salaried employees, i.e., civil servants, and business owners who have been operating for a long time.
Now, let us look into the list of the 10 best banks for car financing.
1. Stanbic Bank Vehicle and Asset Finance
This is one of the best options if you want lower monthly installments.
They provide high financing limits of 95%–100% for new vehicles. You need only a minimal deposit or none at all to possess the vehicle.
They offer some of the longest repayment periods in Kenya, stretching up to 96 months (8 years) for new private cars and 72 months for commercial vehicles.
Financing is available to a wide range of clients, including salaried individuals, SMEs, professionals (doctors, engineers), and even farmers.
2. NCBA Asset Finance Loan
This is a strong option for buyers using established car dealers.
They have the fastest approval, often providing the loan within 12 hours.
They frequently offer a 60 to 90-day grace period (moratorium) before you start paying your first installment.
They have long repayment terms. For new vehicles and specific partnerships (like Isuzu school buses or CFAO fleets), they offer up to 72 months (6 years) to pay.
If you are buying a popular brand like Toyota, Isuzu, or Suzuki, check for active NCBA partnership deals at the dealership, as these often come with lower interest rates and zero processing fees.
3. KCB Bank Vehicle Financing
KCB often finances a high percentage of both personal and commercial vehicle prices, depending on income and credit history. Unlike Stanbic and NCBA, the car itself generally serves as the security.
You can get up to 72 months (6 years) to pay back your loan, which is one of the longest durations available in the market for both used and new cars.
They finance a wide range of assets, from private saloon cars to school buses, tractors, and heavy machinery.
For smaller auto services or parts, you can get 100% financing for up to 10 months at 0% interest using a KCB Credit Card with partners like AutoXpress.
4. Equity Bank Car Loan
For many first-time buyers, this is among the easiest bank options.
Equity Bank provides a unique 105% asset financing plan, which can cover the full cost of the vehicle plus insurance and other associated startup costs.
For new and specific brand vehicles (like those from CFAO Mobility), they offer repayment periods of up to 96 months (8 years), which is among the longest in the Kenyan market.
They finance a broad range of used vehicles, with financing options even for locally used cars, where deposits can be as low as 20% of the car’s value.
If you are a school or educational institution, Equity currently offers specialized 105% financing for buses through its partnership with Toyota, which includes the first year of comprehensive insurance.
5. Co-operative Bank Vehicle Financing
The bank usually offers structured monthly repayment plans.
They offer very flexible repayment periods, ranging from 60 months (5 years) up to 96 months (8 years) for specific categories.
Standard asset finance applications are typically appraised within 48 hours.
A unique feature is that they allow joint applications, making it easier for couples or business partners to combine their incomes to qualify for higher loan amounts.
If you are buying a commercial vehicle, Co-op Bank has strong partnerships with Isuzu, Toyota, and Simba Colt, which often feature pre-negotiated interest rates and faster processing times.
6. Mwananchi Credit Car Financing
Mwananchi Credit is a leading non-bank financial institution in Kenya, best known for providing speed and flexibility that traditional banks often cannot match. Unlike the major banks previously discussed, Mwananchi Credit specializes in asset financing for car purchases and logbook loans for those who already own vehicles.
Unlike commercial banks, they do not focus on your CRB status or past credit history. Instead, they focus on the value of the asset and your current ability to pay.
They finance up to 70%–90% of the vehicle’s value, which is significantly higher than most microfinance competitors.
They are a top choice for entrepreneurs, SMEs, and self-employed individuals who may lack the formal payslips required by big banks.
You can start the process by simply dialing *684# on your phone.
Note: While Mwananchi is much faster and more lenient than banks, their monthly interest rates (starting at 1.6%) can be higher than the annual percentage rates (APR) of major banks. It is an ideal option if you need immediate funding or if your credit score prevents you from accessing bank loans.
Things to Check Before Taking a Car Loan
- interest rate
- hidden charges
- insurance cost
- repayment period
- repossession terms
- CRB implications
Final Thoughts
Choosing the best car financing loan in Kenya depends on your income, credit score, and repayment ability. Compare interest rates, repayment periods, and deposit requirements before applying.
