Debt Consolidation Loans in Kenya

Too many loans eating your salary? Combine them into one and breathe easier every month. It actually helps more than you’d think.

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KCB lets you combine your loans—whether from mobile lenders, banks, or credit cards—into one loan of up to KES 10 million, repayable in up to 72 months. Interest falls between 13% and 16% per year, depending on your credit history and employer profile.

Advantages

Loan limit stretches to KES 10M, which is plenty for serious consolidation.
Repayment term goes up to 6 years, easing pressure on your monthly salary.
Interest is much lower than the 30–50% you pay on short-term apps.
All debts under one roof means you stop juggling multiple due dates.
Ideal for salaried workers—especially those paid through KCB or large employers.

Disadvantages

Your interest rate depends on risk—some borrowers may not get the lowest rate.
You may be charged for early repayment or changes in terms midway.
Longer repayment means more money paid over time, even at a better rate.

KCB’s consolidation loan makes real sense for employed Kenyans tired of living between five different lenders every month, though it’s not the cheapest over the long haul.

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Equity Bank gives customers a chance to combine several loans into one, with financing of up to KES 4 million, repayable over up to 60 months. The interest is pegged at around 14.4% per year, following recent rate cuts by the bank to ease borrowing pressure.

Advantages

Up to KES 4M available – enough to settle most short-term or emergency loans in one go.
Flexible repayment window (up to 5 years) makes it manageable for salaried workers.
Lower interest compared to mobile apps – especially now after the 2025 rate reduction.
One monthly payment clears multiple loan headaches – no more dealing with 4 different lenders.
Works well for people with regular income, especially those paid through Equity.

Disadvantages

Interest rate isn’t fixed for everyone – it depends on your credit standing and employer.
There may be processing charges or insurance added to the loan.
Paying over a longer period means you’ll pay more in total, even with a lower rate.

To me, Equity’s debt consolidation loan makes real sense for anyone tired of chasing deadlines across different lenders, as long as they’re comfortable with the long-term cost.

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With Absa, borrowers can bring together scattered loans into one personal facility of between KES 20,000 and KES 6 million, repayable over a period of up to 8 years. Repayments come straight from your salary account, and the loan includes credit life insurance for added peace of mind.

Advantages

Big loan size – up to KES 6M, enough to cover multiple obligations in one go.
Long repayment window – up to 96 months, easing pressure on monthly income.
No need for collateral, which is a plus for salaried workers without property.
Salary check-off option keeps repayments consistent and reduces late fees.
Credit life insurance included, offering protection in case of death or job loss.

Disadvantages

Interest rates aren’t clearly advertised, so you need to ask and calculate before committing.
A longer loan term might mean you end up paying more overall, even with low monthly instalments.
Eligibility depends on your employer—check-off terms only apply if your organisation is partnered with Absa.

For anyone looking to tidy up multiple loans under one roof, Absa’s offer feels practical and solid—but I’d only sign once I’ve confirmed the actual cost in black and white.

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Stima SACCO members can pull together their scattered debts into one loan by using their Alpha savings to borrow up to four times their deposit, with a repayment period of up to 60 months under the Normal Loan, or up to 96 months with the Super Loan. The interest is charged at 12% per year on reducing balance, making it one of the more affordable options out here.

Advantages

Loan limit grows with your savings – the more you’ve built up, the more you can access.
Fixed interest of 12% on reducing balance – it’s way lower than most shylocks or app lenders.
Long repayment period – up to 8 years with the Super Loan if you need breathing space.
You’re able to combine all your other loans into one, which makes planning easier.
No collateral drama – your Alpha deposit is the security.

Disadvantages

Paying for 8 years means more interest over time, even if the rate looks low.
Loan amount depends on your Alpha savings, so if your deposit is small, you won’t get much.
There’s discipline required – it’s easy to consolidate today and borrow again tomorrow if you’re not careful.

For SACCO members who’ve saved up and want a clean slate, this loan makes sense—affordable, clear, and structured for long-term stability.

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NCBA helps customers combine different loans—credit cards, mobile apps, salary advances—into one personal loan of KES 50,000 to KES 5 million, payable over up to 5 years. Interest rates range between 14% and 17% per year, and repayments are automated from your salary or bank account for smoother tracking.

Advantages

You can borrow up to KES 5 million, which is plenty for cleaning up multiple debts.
Up to 60 months repayment means your monthly commitment stays manageable.
Interest is lower than mobile loans, which usually cross 30% annually.
Having just one repayment per month removes the stress of scattered due dates.
Everything’s done on the NCBA NOW app—no long queues or paperwork delays.

Disadvantages

Your actual rate depends on your credit rating, so it’s not one-size-fits-all.
Longer repayment terms = more total interest, even if the monthly cost is low.
If your salary delays or account is low, automatic deductions can bounce, leading to penalties.

In my view, this loan makes sense for people who want to break free from juggling debt repayments, but only if you take time to understand the cost breakdown before signing.

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Mwalimu SACCO gives salaried members a chance to clean up scattered debts through the Ufanisi Loan, offering up to 5× your savings with repayment spread across up to 10 years. The interest stands at 1.5% per month on reducing balance, and part of the loan is automatically saved back into your deposit account to help you build financial stability.

Advantages

Large borrowing power – five times your savings is no joke when you’re clearing multiple loans.
Long repayment period (up to 120 months) helps you breathe, especially if your net pay has been tight.
Fixed interest rate at 18% per year – that’s way better than digital loans or bank overdrafts.
You grow your savings while repaying, which builds your loan limit and creditworthiness.
Processing is straightforward if your salary goes through Mwalimu FOSA.

Disadvantages

The longer you repay, the more total interest you’ll pay—so don’t stretch it unnecessarily.
It’s only for active, salaried members—you must be contributing and in good standing.
You may need guarantors or collateral, depending on your savings level and risk profile.

I think this is one of the most sensible consolidation options for teachers and salaried staff—well-structured, affordable, and tied to a savings culture that actually benefits the borrower.

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Standard Chartered gives salaried Kenyans the option to clean up their credit mess with a personal loan of between KES 20,000 and KES 7 million, paid back over 6 to 84 months. Interest starts from 19% per year, and the loan comes bundled with retrenchment and life cover, offering some security if life throws a curveball.

Advantages

You can access up to KES 7 million, enough to clear even heavy credit card and mobile app debts.
Repayment up to 7 years gives you breathing room when your payslip is tight.
No need for security or title deed—it’s fully unsecured.
The interest rate is lower than what many short-term lenders and apps charge.
Comes with insurance cover, so you’re cushioned if you lose your job or worse.

Disadvantages

There’s a 2.5% arrangement fee, plus mandatory insurance—you need to add that into your budget.
Final interest can go above 20%, depending on your profile.
Repayment is tied to your salary, so delays in pay can cause issues with your loan schedule.

From my side, this loan makes sense for someone who wants to tidy up multiple debts, but I’d only recommend it to people who’ve already cleaned up their spending habits.

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Faulu gives borrowers a chance to clear off several debts by combining them into one loan of up to KES 6 million, which can be repaid over a period of up to 96 months. The interest sits around 19% per year, and the loan is open to both salaried and business clients who want to make their finances easier to manage.

Advantages

You can borrow as much as KES 6M, which is more than enough to sort out most loan balances.
Repayment can go up to 8 years, which reduces pressure on your payslip.
Faulu’s rate is still lower than most mobile loans, which are often over 30% p.a.
Works for both individuals and small businesses, so it’s flexible.
Fast approval turnaround, especially for check-off clients—some cases clear in under 24 hours.

Disadvantages

19% annual interest still adds up, especially on longer terms.
You must have consistent income, and terms can vary depending on your employer or business.
Some early repayment or processing fees may apply—check before signing anything.

I see Faulu’s loan as a practical option for borrowers who need to breathe and reorganise, but the benefit really comes if you use it to stop the cycle—not restart it.

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Unaitas offers members a chance to clear off scattered loans by combining them into one facility of up to KES 5 million, with repayment stretched over up to 7 years. Interest is charged at about 15–18% per annum, and instalments are deducted directly from your salary or savings account.

Advantages

Loan limit of KES 5M gives you enough headroom to clear big and small debts at once.
Repayment goes up to 84 months, so you can spread your instalments without choking your salary.
The interest rate is way better than mobile loan apps, which can go above 30% p.a.
No collateral needed for check-off loans if your employer is in good standing.
Processing is fairly quick for active members, especially those paid through Unaitas.

Disadvantages

Final rate depends on your risk profile, so don’t expect the lowest rate by default.
The longer you repay, the more you pay in total interest—even if monthly instalments feel lighter.
Salary-linked repayment means delays in pay can trigger penalties, especially if your account isn’t well funded.

From where I stand, Unaitas is offering a practical way out of debt circles, but it only truly works if you keep your income steady and avoid taking on more loans during repayment.

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MOGO helps car owners clear multiple debts by offering loans of up to KES 2.5 million, payable in up to 60 months, using your logbook as security. Interest is charged at around 30% per year, and once approved, funds are released the same day — no delays.

Advantages

ou can borrow big—KES 2.5M is enough to settle serious debt.
Flexible repayment up to 5 years gives room to breathe.
Money is processed fast—many clients get disbursed within hours.
You keep using your car, even though it’s held as collateral.
No hidden charges, and they say they’ll beat competitor prices with their Best Price Guarantee.

Disadvantages

30% interest is high, so the longer you repay, the more you pay overall.
You risk losing your car if you fall behind on instalments.
MOGO has had issues with transparency in the past, including being flagged by the regulator for unfair terms.

This loan works well for someone who’s drowning in short-term debts and needs urgent cash, but the cost and risk mean you must have a tight repayment game plan.

Online application

Advantages

You can borrow big—KES 2.5M is enough to settle serious debt.
Flexible repayment up to 5 years gives room to breathe.
Money is processed fast—many clients get disbursed within hours.
You keep using your car, even though it’s held as collateral.
No hidden charges, and they say they’ll beat competitor prices with their Best Price Guarantee.

Disadvantages

30% interest is high, so the longer you repay, the more you pay overall.
You risk losing your car if you fall behind on instalments.
MOGO has had issues with transparency in the past, including being flagged by the regulator for unfair terms.

This loan works well for someone who’s drowning in short-term debts and needs urgent cash, but the cost and risk mean you must have a tight repayment game plan.

Online application

Ngao Credit allows car owners to unlock up to KES 5 million using their logbook, which can be repaid over a period of up to 24 months. The interest sits at 3.5% per month, and once approved, the funds hit your account the same day—with no CRB check required.

Advantages

Big loan size – KES 5M can clear mobile loans, salary advances, and even shylock debts in one move.
Fast disbursement – some borrowers report getting their money in less than six hours.
You still drive your car – even though the logbook is used as security, you don’t lose access.
Clear and predictable fees – no surprise deductions after disbursement.
Bad credit? Not a problem – they don’t use CRB status as a barrier.

Disadvantages

The interest adds up fast – 3.5% monthly means about 42% per year.
Plenty of upfront fees – from processing to valuation and NTSA checks, the first week gets expensive.
Missed payments can cost you your car, since it’s tied to the loan.

In my view, Ngao’s loan is a solid short-term fix if you need to get multiple lenders off your back—but it only works if you treat it with discipline and don’t stretch the repayments too far.

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Izwe offers borrowers the opportunity to roll over high-cost debts into a single unsecured personal loan of up to KES 2 million, repayable over up to 120 months (10 years), with fixed monthly repayments and speedy disbursement—often within hours of approval.

Advantages

10-year repayment stretch means smaller monthly dues and more wiggle room in tight budgets.
Fixed monthly instalments make it painless to plan your finances—no surprises.
Unsecured loan—no need for collateral, just stable income and credit checks.
Simple rate structure—no compounding tricks, so you know what you’re signing up for.
Fast turnaround on approvals, making it useful for urgent cleanup of multiple loans.

Disadvantages

A long tenure means more total interest—even if the rate seems fair.
Borrowing adds to your monthly debt profile, which might affect credit score eligibility later.
Approval depends on income consistency and credit record, so not everyone qualifies.

My take: Izwe Kenya’s consolidation loan offers real structure and breathing space, but only works if borrowers stay focused and avoid sliding back into debt.

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Police SACCO gives its members the chance to combine all their scattered loans into one by offering up to 5 times your deposits, with repayment periods of up to 5 years. The interest sits at a friendly 12% per year on reducing balance, and everything runs through the SACCO’s familiar BOSA system.

Advantages

Loan size depends on your savings, so disciplined members can qualify for large amounts.
One repayment every month helps clean up the confusion of juggling several loans.
12% interest is affordable, especially compared to digital loans charging more than double that.
Flexible repayment over 60 months gives you room to breathe.
Handled through the SACCO—a space most members already trust and understand.

Disadvantages

You must have consistent deposits to qualify—no shortcuts.
Spreading the loan over years can mean paying more interest overall, even at a low rate.
This loan is only for members—you need to be active and on payroll with Police SACCO.

From my point of view, this loan is one of the more reasonable options out there, especially for civil servants who need to tidy up without dealing with aggressive lenders.

Online application

MyCredit gives civil servants and salaried workers a chance to consolidate their debts into one loan, offering between KES 100,000 and KES 5 million, paid back over up to 24 months. The loan is secured using your vehicle’s logbook, with check-off repayment straight from your salary.

Advantages

You can borrow up to KES 5M, enough to settle mobile loans, shylocks, and salary advances all in one go.
Quick processing—most clients get approved and disbursed within 48 hours.
Monthly payments are deducted from your payslip, so no worrying about forgetting due dates.
The loan is tailored for civil servants, making the paperwork process smoother.
Using your car logbook means no need to surrender your home or land title.

Disadvantages

Loan term is short (max 2 years)—so monthly payments can be high.
Your vehicle stays under charge until you clear the loan, which carries risk.
Interest rates are not clearly displayed, so you have to ask directly and confirm your cost.

In my view, MyCredit’s logbook loan is a practical fix for civil servants deep in debt, but the short term means you need to be financially steady and disciplined.

Frequently Asked Questions (FAQ)

What is a debt consolidation loan?

It’s a loan that helps you bring all your separate debts together into one. That means instead of paying different lenders every month, you make just one payment to a single lender.

How does the process actually work?

The lender gives you enough money to clear your existing debts, and then you repay that new loan in regular installments. It’s mainly about simplifying things — and sometimes reducing your overall cost.

Who can qualify for this kind of loan?

Usually, lenders will look at how much you earn, your repayment history, and how much you already owe. If you have a steady income and aren’t too far behind on payments, you stand a fair chance.

Will I end up paying less in total?

Not always. You might pay less each month, but if the loan term is longer, you could end up paying more in the long run — so always check the full repayment breakdown.

Does taking a consolidation loan affect my credit score?

Yes, it can. If you stay on track with repayments, it can actually help your score improve over time — but missed payments still count against you.

What if I’ve already fallen behind on one of my loans?

You’re not alone — and some lenders may still consider your application. Be honest about your situation; some providers have options designed for people who are already struggling with multiple debts.

Lender	Loan Amounts (KES)	Loan Terms	Interest Rate (% p.a.)	Key Features for Debt Consolidation
KCB Bank	50,000 – 10,000,000	Up to 72 months	~13-16%	Offers loan buy-offs to consolidate debts from other banks and digital lenders into one loan.
Equity Bank	Up to 4,000,000	Up to 60 months	~14-17%	Provides personal loans that can be used to consolidate existing debts into a single payment.
Absa Bank Kenya	Up to 6,000,000	12 – 72 months	~15-18%	Offers loan takeovers and consolidation services for existing, more expensive loans.
Stima SACCO	Based on deposits	Up to 84 months	~14%	A core product is buying off member loans from other institutions at a lower interest rate.
NCBA Bank	50,000 – 5,000,000	Up to 60 months	~14-17%	Allows customers to consolidate various debts, including credit cards and other loans.
Mwalimu National SACCO	Based on deposits	Up to 96 months	~14-15%	Very popular among teachers for consolidating more expensive loans from other sources.
Standard Chartered Bank	100,000 – 7,000,000	12 – 60 months	~16-19%	Offers personal loans designed for debt consolidation with competitive rates for salaried individuals.
Faulu Microfinance Bank	Up to 6,000,000	Up to 96 months	~19%	Can offer business or personal loans to consolidate smaller, high-interest debts.
Unaitas SACCO	Based on deposits	Varies	~15-18%	Provides refinancing options for members struggling with multiple expensive loans.
MOGO	Up to 2,500,000	Up to 60 months	From 30% p.a.	A logbook loan can be used as a practical tool to get a large sum to clear many smaller debts.
I&M Bank	Up to 3,000,000	Up to 48 months	~16-18%	Offers personal loans which can be structured for the purpose of debt consolidation.
Ngao Credit	Up to 5,000,000	Up to 24 months	From ~36% p.a.	Another secured loan option to consolidate high-interest mobile loans into one payment.
Izwe Kenya	Up to 500,000	Up to 60 months	Competitive	Check-off loans for government employees can be used to refinance and consolidate other debts.
Police SACCO	Based on deposits	Up to 72 months	~13-15%	Offers competitive loan buy-off facilities for members of the national police service.
MyCredit Limited	Up to 3,000,000	Up to 48 months	Competitive secured rates	A secured loan can be obtained to consolidate various unsecured debts under one roof.