Car Loan Interest Rates in Kenya 2026: 22 Banks Compared

Updated 1 November 2026

Car loan interest rates in Kenya range from an average of about 14.5% a year at the cheapest banks to over 23% at the most expensive, on the asset finance rates banks publish on the Kenya Bankers Association’s Total Cost of Credit (TCC) site. Prime Bank (14.5%), Victoria Commercial Bank (14.66%), M-Oriental (15.2%) and KCB (15.88%) post the lowest averages; Credit Bank (23.5%) and Commercial International Bank (24.96%) the highest. On a KSh 1.5 million car loan over four years, the gap between a 14.66% and a 19.57% bank is about KSh 183,000 in interest.

Updated November 2026. Asset finance (vehicle and equipment) rates from costofcredit.co.ke, average, minimum and maximum reports, checked 1 November 2026. Each bank’s update date is shown.

Car loan interest rates in Kenya by bank (asset finance)

Source: KBA Total Cost of Credit. Banks not listed had no asset finance figure on the site, or published figures that were internally inconsistent (Bank of Baroda’s minimum was above its maximum, so we left it out). Rates are the Central Bank Rate plus each bank’s premium. Several banks, including Prime, Family and Middle East Bank, last updated in March or April 2026: ask for a current quote.

What a 2-point gap costs you

Here is a KSh 1.5 million car loan over 48 months on a reducing balance, at four published averages. These are our calculations; your bank may add fees and insurance.

Try your own numbers on the car loan calculator.

Average vs minimum: which rate will you get?

The average is what a typical borrower pays. The minimum goes to the lowest-risk customers: strong salary or business income, a clean credit record and a big deposit. Some banks have very wide bands. NCBA’s runs from 10.6% to 26.4% and DTB’s from 11.01% to 19.04%, so a prime borrower there could beat Prime Bank’s average, while a riskier borrower could pay far more. Others, such as DIB, Ecobank and HFC, quote a single figure.

Interest is only part of the cost

Every bank must give you a TCC statement before you sign. For car loans it should show:

• arrangement or processing fees and excise duty on them;
• valuation and tracking fees, which banks often require for vehicles;
• comprehensive motor insurance, usually compulsory while the loan runs;
• the annual percentage rate (APR), which bundles all of these.

Compare APRs, not just headline rates. If you are importing the car, add duty and taxes to your budget first: see car import duty rates in Kenya and the KEBS 8-year rule. Before you pay for a used car, check who owns it on NTSA.

How to get a lower car loan rate

1. Put down a bigger deposit. Less borrowed means less risk for the bank.
2. Use your salary bank. Banks often price existing customers lower because they can see your income.
3. Get two or three written quotes and show the best to the others.
4. Shorten the term if you can afford it; total interest falls fast.
5. Clear old defaults on your credit report before applying.

For broader bank comparisons, see our best banks for personal loans.

Frequently asked questions

Which bank has the lowest car loan interest rate in Kenya?

On published TCC averages, Prime Bank (14.5%, updated March 2026), Victoria Commercial Bank (14.66%) and M-Oriental (15.2%) were lowest; KCB was the lowest of the large banks at 15.88%.

What is the average car loan interest rate in Kenya?

Most banks’ published asset finance averages sit between about 15% and 19% a year as at October 2026.

How much is the monthly repayment on a KSh 1.5 million car loan?

Over 48 months, about KSh 41,500 at 14.66% and KSh 45,300 at 19.57%, before fees and insurance.

Where can I check car loan rates myself?

On costofcredit.co.ke, under interest rate reports, choose the Asset Finance category.