Updated 29 October 2026
Sacco loans in Kenya in 2026 typically cost 12% to 14.5% a year on a reducing balance, against a bank average of 15% to 17% at the big banks. Stima Sacco’s normal loan is 12% a year for up to 60 months at four times your deposits, Mwalimu National charges 14.5% on its development loan and 12% on its emergency loan, and Harambee Sacco charges 1% a month, though some Harambee loans are worked out on a flat rate, which costs more.
This page compares Sacco loan rates, multiples, repayment periods and fees as each Sacco publishes them, shows the cost in shillings, and explains how to read the small print. Every figure was checked on October 28, 2026 on the Sacco’s own website. Tower Sacco’s loan pages do not publish interest rates, so its column says “not published”.
This guide is information, not financial advice. Rates change often, so confirm the full cost with the lender before you sign.
Sacco Loan Rates Compared (October 2026)
As published on each Sacco’s website, checked on October 28, 2026. “Multiple” means the loan limit as a multiple of your non-withdrawable deposits.
| Sacco and loan | Interest rate | Method | Multiple or limit | Maximum period | Fee |
|---|---|---|---|---|---|
| Stima Sacco, Normal loan | 12% p.a. | Reducing balance | 4 x deposits | 60 months | not published |
| Stima Sacco, Premium loan | 13% p.a. | Reducing balance | 5 x deposits | 96 months | not published |
| Stima Sacco, Mwangaza (non-scheme) | 14% p.a. | Reducing balance | up to KSh 5m | 48 months | not published |
| Stima Sacco, SOSA loan | 15% p.a. | Reducing balance | 4 x deposits | 24 months | not published |
| Stima Sacco, Make Over loan | 18% p.a. | Reducing balance | up to KSh 1m | 48 months | not published |
| Stima Sacco, Funika | 1% a day | Daily | up to KSh 15,000 | 30 days | not published |
| Mwalimu National, Development loan | 14.5% p.a. | Reducing balance | 4 x deposits | 60 months | 0.5% processing |
| Mwalimu National, Emergency loan | 12% p.a. (1% a month) | Reducing balance | 5 x deposits | 24 months | not published |
| Mwalimu National, School fees loan | 1% a month | Reducing balance | 5 x deposits | 24 months | not published |
| Harambee Sacco, Development loan | 1% a month | Reducing balance | 3 x savings | 48 months | 1%, max KSh 5,000 |
| Harambee Sacco, Emergency loan | 1% a month | Flat rate | 3 x savings, max KSh 100,000 | 12 months | KSh 1,500 |
| Harambee Sacco, School fees loan | 1% a month | Flat rate | 3 x savings | 12 months | KSh 1,500 |
| Tower Sacco, Normal loan (salaried) | not published | not published | 5 x share deposits | 84 months | not published |
| Tower Sacco, Vuka loan (check-off) | not published | not published | KSh 100,000 to KSh 5m, no multiplier | 132 months or retirement | not published |
| Tower Sacco, Fosa Flex loan | not published | Reducing balance | based on ability to repay | 96 months | not published |
What a KSh 1 Million Sacco Loan Costs
Our own calculation, interest only, before fees and insurance, using the published rates:
| Loan | Rate and period | Monthly instalment | Total interest |
|---|---|---|---|
| Harambee Development | 12% p.a., 48 months | KSh 26,334 | KSh 264,024 |
| Stima Normal | 12% p.a., 60 months | KSh 22,244 | KSh 334,667 |
| Mwalimu National Development | 14.5% p.a., 60 months | KSh 23,528 | KSh 411,697 |
| Stima Premium | 13% p.a., 96 months | KSh 16,807 | KSh 613,496 |
| Bank comparison: KCB average personal rate | 15.54% p.a., 60 months | KSh 24,074 | KSh 444,459 |
| Bank comparison: Equity average personal rate | 16.91% p.a., 60 months | KSh 24,804 | KSh 488,253 |
Bank rates are averages reported to the Kenya Bankers Association’s Total Cost of Credit site, checked on October 28, 2026. Notice that a longer period lowers the monthly instalment but raises the total interest sharply: Stima’s 96-month Premium loan costs nearly twice as much interest as its 60-month Normal loan. Compare individual banks with our bank loan calculators.
Flat Rate vs Reducing Balance: Why It Matters
Harambee’s emergency and school fees loans charge 1% a month on a flat basis, which means interest is charged on the original amount for the whole term. On KSh 100,000 over 12 months that is KSh 12,000 of interest. The same 1% a month on a reducing balance costs about KSh 6,619, because you pay interest only on what you still owe. A flat 1% a month works out to roughly double the cost of a reducing 1% a month over a year, so always ask which method applies.
How Sacco Loan Limits Work
- Multiples: most Sacco loans are capped at 3 to 5 times your non-withdrawable deposits. With KSh 200,000 in deposits, a 4 x loan gives up to KSh 800,000.
- Guarantors: where your deposits don’t cover the loan, other members guarantee the balance with their deposits. Tower’s normal loan needs 3 guarantors.
- Salary rule: for check-off loans, your take-home pay after the instalment must stay above a set share of your salary, such as Mwalimu’s one-third rule.
- Waiting period: you usually need a few months of membership and regular saving first.
Work out your own figures with the Stima Sacco loan calculator, Mwalimu National loan calculator or Tower Sacco loan calculator, or browse all Sacco loan calculators.
How to Choose a Sacco for a Loan
- Confirm it is licensed. Learn how to check if a Sacco is licensed by SASRA.
- Compare the rate and the method (flat or reducing).
- Check the multiple, waiting period and guarantor rules.
- Ask for the full fee list: processing, insurance and clearance fees on top-ups.
- Look at the dividend too, since your deposits earn while you borrow. See our best Saccos in Kenya and the Sacco dividend calculator.
Frequently Asked Questions
Which Sacco has the lowest loan interest rate in Kenya?
Among the Saccos we checked, Stima’s Normal loan (12% a year, reducing balance), Mwalimu National’s Emergency loan (1% a month, reducing) and Harambee’s Development loan (1% a month, reducing) are the cheapest published rates.
Are Sacco loans cheaper than bank loans?
Usually. The Sacco loans above run at 12% to 14.5% a year on a reducing balance, while big banks average 15.54% (KCB) to 17.3% (NCBA) for personal loans. Flat-rate Sacco loans can cost more than they look.
How many times my savings can I borrow from a Sacco?
Typically 3 to 5 times. Harambee lends up to 3 times, Stima up to 4 times on its Normal loan and 5 on Premium, and Mwalimu National up to 5 times on emergency and school fees loans.
Does Tower Sacco publish its loan interest rates?
Not on its loan product pages at the time of checking. Ask a branch or customer care on 0792 333 111 for a written quote.
Several big Saccos also hire loan officers and credit staff. See openings on JobinKenya.
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