Best Car financing options in Kenya in 2026

Owning a car nowadays is not luxury, it’s a need and to fulfill this need more and more Kenyan People moving towards Car Financing options to drive their dream cars. Due to increased people demand, these car financing institutes are Rapidly Evolving their services in 2026 by providing easier and faster affordable options to buyers.

But before you go with any Finance option such as Bank, SACCO or any dealership, its important to understand every option and make the right choice. Here, In this article We will tell explore the the top financing providers, compare loan terms, and highlight what to expect from Kenya’s auto finance market in 2026.

Top Car Financing Institutions in Kenya (2026 Update)

Here’s a closer look at the best car loan providers in Kenya and how each category can help you own your next car with ease.

1. Banks Offering Car Loans

 Kenyan banks remain the most trusted and structured sources for car financing in 2026. They offer competitive interest rates, long repayment periods, and loan options for both brand-new and used cars.  

Cooperative Bank – Cooperative bank is good option for both salaried and self-employed people. They provide flexible loan repayment terms and fast approvals. They also allow joint applications, making it easier for couples or business partners to share costs.

KCB Bank – KCB’s car loan program is ideal for buyers looking for low interest rates and extended repayment terms (up to 60 months). It also provides special offers for customers purchasing through verified dealerships.

I & M Bank – A favorite among business owners and fleet operators, NCBA offers attractive loan-to-value ratios and quick disbursements. Their auto loan calculator helps borrowers estimate payments before committing, ensuring transparency from the start.

2. SACCOs and Microfinance Institutions

If you want financing that feels more personal and flexible, SACCOs and microfinance institutions are really catching on in Kenya. They usually beat banks when it comes to interest rates and don’t bury you in red tape, which is a huge relief for people who are self-employed or working in the informal sector.

Take QONA SACCO and United Winners SACCO, for example. They’ve got vehicle loans with good rates and terms that actually make sense for their members. On the microfinance side, Unlimited Kenya and Lock Microfinance Bank also give out car loans whether you’re buying for yourself or for your business. You’ll often get an answer faster, and you won’t need as much for a down payment.

If you like dealing with lenders who know your name, want less hassle, and have a solid savings record with your SACCO, these options make a lot of sense.

3. Dealership Financing Programs

In 2026, more dealerships will jump into car financing sector. Dealerships are rolling out their own finance programs by creating partnerships with banks or other fintech companies.

For example, we at Maridady Motors also offer flexible car financing options to help people get their own used or new vehicle without breaking their budget. Maridady Motors also teaming up with financial institutions where buyers can buy their own used or new vehicles through affordable monthly installments. We have also partnered with financial institutions like SACCO to simplify the loan process and reduce approval times.  We have partnered with  QONA Sacco, United Winners Sacco, Njiwa Sacco, DIMKES Sacco and Mhasibu Sacco.

Kenyan people also love dealership because they don’t need to go anywhere else, everything happens in one place. You choose your car, give down payment, complete documentation and drive car to home. If you are short on money, dealership financing is great choice.

What to Consider Before Applying for a Car Loan

1. Monthly Income and Repayment Capacity
When it comes to loan, Lenders prefer those who can handle installments and can repay each month. So, calculate this before choosing a plan.
2. Credit History and Loan Limits
make sure you have a strong credit score as it improves the changes of loan approval and securing better loan rates. Poor Credit history may limit your loan amount and lead to a high interest rates.  
3. Hidden Charges or Penalties
when applying for loan, always read the document carefully to save yourself for later problems as some loans come with extra processing fees, insurance costs, etc.

      4. Value of the Car vs. Total Loan Cost

Make Sure to compare your car’s market value with the total repay amount to confirm that you are not overpaying for used cars for sale in Kenya. 

Tips to Increase Your Car Loan Approval Chances

Maintain a Good Credit Score
Lenders in Kenya check your repayment history before approving loans. Pay bills on time and clear existing debts to boost your car loan approval chances.You can always check your CRB report through apps like : Crystobol and TransUnion Nipashe.

Save for a Strong Down Payment
The higher your down payment, the smaller your loan — and the better your approval odds. It also reduces your monthly burden and interest over time.

Choose a Trusted Dealer for Verified Car Valuation
Working with reputable dealers ensures the car’s value is accurately assessed, which helps banks process your loan faster and with more confidence.

Avoid Overstretching Your Budget
Only apply for what you can comfortably repay. Overcommitting may lead to rejection or financial stress after approval.

Conclusion

Choosing the right financing option in Kenya saves you a lot of money, efforts and time. There are different financing options like SACCO, Banks, and local dealerships. You can choose either of them reading the information we gave above. So, go get and buy your dream car and don’t forget to visit Maridady Motors once for best Car deals in Kenya.

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Owning a car nowadays is not luxury, it’s a need and to fulfill this need more and more Kenyan People moving towards Car Financing options to drive their dream cars. Due to increased people demand, these car financing institutes are Rapidly Evolving their services in 2026 by providing easier and faster affordable options to buyers.

But before you go with any Finance option such as Bank, SACCO or any dealership, its important to understand every option and make the right choice. Here, In this article We will tell explore the the top financing providers, compare loan terms, and highlight what to expect from Kenya’s auto finance market in 2026.

Top Car Financing Institutions in Kenya (2026 Update)

Here’s a closer look at the best car loan providers in Kenya and how each category can help you own your next car with ease.

1. Banks Offering Car Loans

 Kenyan banks remain the most trusted and structured sources for car financing in 2026. They offer competitive interest rates, long repayment periods, and loan options for both brand-new and used cars.  

Cooperative Bank – Cooperative bank is good option for both salaried and self-employed people. They provide flexible loan repayment terms and fast approvals. They also allow joint applications, making it easier for couples or business partners to share costs.

KCB Bank – KCB’s car loan program is ideal for buyers looking for low interest rates and extended repayment terms (up to 60 months). It also provides special offers for customers purchasing through verified dealerships.

I & M Bank – A favorite among business owners and fleet operators, NCBA offers attractive loan-to-value ratios and quick disbursements. Their auto loan calculator helps borrowers estimate payments before committing, ensuring transparency from the start.

2. SACCOs and Microfinance Institutions

If you want financing that feels more personal and flexible, SACCOs and microfinance institutions are really catching on in Kenya. They usually beat banks when it comes to interest rates and don’t bury you in red tape, which is a huge relief for people who are self-employed or working in the informal sector.

Take QONA SACCO and United Winners SACCO, for example. They’ve got vehicle loans with good rates and terms that actually make sense for their members. On the microfinance side, Unlimited Kenya and Lock Microfinance Bank also give out car loans whether you’re buying for yourself or for your business. You’ll often get an answer faster, and you won’t need as much for a down payment.

If you like dealing with lenders who know your name, want less hassle, and have a solid savings record with your SACCO, these options make a lot of sense.

3. Dealership Financing Programs

In 2026, more dealerships will jump into car financing sector. Dealerships are rolling out their own finance programs by creating partnerships with banks or other fintech companies.

For example, we at Maridady Motors also offer flexible car financing options to help people get their own used or new vehicle without breaking their budget. Maridady Motors also teaming up with financial institutions where buyers can buy their own used or new vehicles through affordable monthly installments. We have also partnered with financial institutions like SACCO to simplify the loan process and reduce approval times.  We have partnered with  QONA Sacco, United Winners Sacco, Njiwa Sacco, DIMKES Sacco and Mhasibu Sacco.

Kenyan people also love dealership because they don’t need to go anywhere else, everything happens in one place. You choose your car, give down payment, complete documentation and drive car to home. If you are short on money, dealership financing is great choice.

What to Consider Before Applying for a Car Loan

1. Monthly Income and Repayment Capacity
When it comes to loan, Lenders prefer those who can handle installments and can repay each month. So, calculate this before choosing a plan.
2. Credit History and Loan Limits
make sure you have a strong credit score as it improves the changes of loan approval and securing better loan rates. Poor Credit history may limit your loan amount and lead to a high interest rates.  
3. Hidden Charges or Penalties
when applying for loan, always read the document carefully to save yourself for later problems as some loans come with extra processing fees, insurance costs, etc.

      4. Value of the Car vs. Total Loan Cost

Make Sure to compare your car’s market value with the total repay amount to confirm that you are not overpaying for used cars for sale in Kenya. 

Tips to Increase Your Car Loan Approval Chances

Maintain a Good Credit Score
Lenders in Kenya check your repayment history before approving loans. Pay bills on time and clear existing debts to boost your car loan approval chances.You can always check your CRB report through apps like : Crystobol and TransUnion Nipashe.

Save for a Strong Down Payment
The higher your down payment, the smaller your loan — and the better your approval odds. It also reduces your monthly burden and interest over time.

Choose a Trusted Dealer for Verified Car Valuation
Working with reputable dealers ensures the car’s value is accurately assessed, which helps banks process your loan faster and with more confidence.

Avoid Overstretching Your Budget
Only apply for what you can comfortably repay. Overcommitting may lead to rejection or financial stress after approval.

Conclusion

Choosing the right financing option in Kenya saves you a lot of money, efforts and time. There are different financing options like SACCO, Banks, and local dealerships. You can choose either of them reading the information we gave above. So, go get and buy your dream car and don’t forget to visit Maridady Motors once for best Car deals in Kenya.