Unsecured Loans in Kenya

No collateral? That’s okay. These loans are given based on your income and trust — just make sure to repay on time.

Online application

With just your phone and a working M-PESA line, M-Shwari lets you borrow from as low as Ksh 1,000 up to about Ksh 50,000, depending on how you use and repay. The loan lasts 30 days, and you’re charged a flat 7.5% fee plus 1.5% excise, all chopped off upfront before the money hits your M-PESA.

Advantages

No queues, no forms – Just dial *334# or open the M-PESA app, and the loan comes through in seconds.
Even small amounts are okay – Whether it’s airtime, fare, or buying unga, even Ksh 1,000 does something.
You build your limit as you go – Pay back on time, save a little on M-Shwari, and your limit goes up.
24/7 access – Doesn’t matter if it’s 2am on a Sunday — your phone becomes your bank.
Fully unsecured – No title deed, no payslip, no one to co-sign. Just your usage and repayment history.

Disadvantages

30 days is short – Miss the deadline, and it rolls over with another 7.5% slapped on.
Fees cut your money – You borrow Ksh 1,000, but what you get is less than that.
Easy to misuse – Because it’s quick and small, many people borrow without planning, and end up stuck in a loop.

M-Shwari is solid for quick fixes and emergencies, but if you don’t treat it with respect, those small fees can quietly eat you alive.

Online application

With just a mobile phone and your ID, you can unlock between Ksh 100 and Ksh 50,000 from Hustler Fund, repayable within 30 days at a low 8% annual rate, calculated daily. Miss the deadline? You get one rollover with a slightly higher 9.5% rate, but no CRB listing or crazy penalties.

Advantages

Quick and clean access – Dial *254#, confirm with your PIN, and the loan hits your M-PESA within seconds.
No paperwork or security – You don’t need a payslip, guarantor, or title deed—just your phone and national ID.
Even small amounts count – Whether you need Ksh 300 for airtime or Ksh 5,000 to restock your stall, it’s sorted.
Limit grows with you – The more you repay on time, the more they trust you—with better limits and Bridge Loan access later on.
Built-in savings – 5% of every loan goes straight into your savings pot—split between short-term and retirement.

Disadvantages

30 days fly by – If you don’t manage your time well, that deadline creeps up fast.
Rollover isn’t free – Delaying repayment means you enter a new 30-day cycle with extra charges.
Not for big plans – Even at max, Ksh 50,000 can’t cover long-term projects or major emergencies.

I think Hustler Fund is a solid backup for small-time needs — as long as you use it smartly and don’t treat it like free money.

Online application

With Co-op Bank, salaried customers can borrow from Ksh 50,000 all the way up to Ksh 8 million, and repay in small chunks over a period of up to 8 years. The loan rides on the bank’s Base Lending Rate (currently 14.5%) plus a margin, and you need to route your salary through a Co-op account.

Advantages

No need to tie down your property – You don’t lose sleep over logbooks or title deeds—this one is fully unsecured.
Big enough for real plans – Whether it’s a home project, school fees or a health bill, Ksh 8M gives you room to breathe.
Long repayment stretch – Up to 96 months means you won’t be squeezed at the end of every month.
Fast processing – Once you’ve submitted everything, you can get a decision in as little as 48 hours.
Rates are relatively fair – With the current BLR plus a margin, it’s affordable compared to most unsecured loans in the market.

Disadvantages

Salary must pass through Co-op – If your employer hasn’t partnered with them, you’ll have to shift your payroll first.
Upfront costs deducted – Before the cash reaches you, insurance and taxes are already chopped off.
Strict on who qualifies – If you’re in the informal sector or don’t earn a regular salary, this one’s not for you.

This Co-op loan is solid—big limits, flexible terms, and not too heavy on the pocket if you’re salaried and organised.

1. What exactly is an unsecured personal loan?

It’s a type of loan you can take without offering any asset as security. The lender decides based on your income, credit history, and ability to repay.

2. How do I apply for one?

Start by choosing a lender and filling out their application form — usually online. You’ll need to provide some basic documents, like your ID and proof of income. The process is often quick, and you might get a response within a day or two.

3. Do I need a high income to qualify?

Not necessarily. While you do need to show steady income, many lenders accept both salaried and self-employed applicants. What matters most is that you can prove you can repay on time.

4. Are there any hidden charges I should watch out for?

Some lenders include extra fees, like processing costs or penalties for early repayment. Always read the full loan terms carefully so you know exactly what you’re agreeing to.

5. Will this loan affect my credit score?

Yes — both positively and negatively. Paying on time can improve your score and make future borrowing easier, but missed payments can hurt your rating and limit your options.

6. What are my options if I’m unsure about taking a loan?

Before borrowing, consider other ways to meet your needs — like using savings, joining a SACCO, or getting help from family. A loan can help in emergencies, but it’s okay to step back and weigh your choices first.

Provider	Loan Amount (KES)	Term	Interest / Rate	Bonuses / Promotions
M‑Shwari (Safaricom/NCBA)	100 – 50,000	30 days	Facility fee 7.5% per 30 days	Instant mobile; no paperwork
Hustler Fund	Up to ~50,000	≤30 days (flexible)	Flat 8% p.a. (≈0.02% daily)	Government-backed; instant mobile loan
Co‑operative Bank of Kenya	50,000 – 8,000,000	Up to 96 months	≈16.00% p.a. (up to 5 yrs unsecured) :contentReference[oaicite:3]{index=3}	Insurance; 48‑hr approval
Stanbic Bank	100,000 – 7,000,000	Up to 96 months	≈16.16% p.a. for mortgages; unsecured ~20.13%	Top‑up; personalised rates; 48 h approval
Standard Chartered	100,000 – 7,000,000	6 – 84 months	≈18.38% p.a. unsecured	Balance transfer; loan insurance
Equity Bank (Eazzy Loan)	100 – 3,000,000	Up to 24 months	≈17.16% – 17.39% p.a.	Instant digital; no paperwork; recent rate cuts
National Bank of Kenya	50,000 – 6,000,000	6 – 84 months	≈17.80% p.a.	Top-up after 3 repayments; fast turnaround
Absa Bank Kenya	20,000 – 6,000,000	Up to 96 months	≈17.79% p.a.	Insurance; salary check-off
Kingdom Bank	Up to 6,000,000	Up to 120 months	≈18.50% p.a.	Loan consolidation; extended term
KCB Bank (non-checkoff)	Up to 4,000,000	Up to 48 months	≈20.00% p.a.	Flexible repayment; no collateral
Access Bank (Mpower)	20,000 – 3,000,000	Up to 60 months	≈20.00% p.a.	Top-up after 6 months; 1% processing fee
Rafiki Microfinance Bank	Up to 500,000	Flexible, tailored	Up to 29% p.a. unsecured (short-term)	Quick TAT; online/mobile access
Faulu Microfinance Bank	Up to 500,000	Short–mid term	Market-linked MFI rates (varies)	Unsecured micro-loan; salary advance option
SMEP Microfinance Bank	Varies (business-focus)	Short-term mobile	“Competitive” – ChapChap rate (not specific)	Instant via Cash Kash; mobile lending