Asset finance in Kenya (2026)
Asset finance funds the purchase of a productive asset (car, boda boda, tractor, equipment) with the asset itself as security. This hub compares the Kenyan non-bank asset financiers (Watu, Mogo, M-KOPA Mobility, Mwananchi, Momentum, Progressive) against the bank asset-finance desks and points into every asset-finance guide on paybillke. Verified 2 September 2026.
Assets commonly financed in Kenya
- Cars and matatus. Financed by Mogo, Mwananchi Credit, and every commercial bank asset-finance desk.
- Trucks. Bank-dominated segment (KCB, Equity, Stanbic, ABSA, DTB). Non-bank options exist for smaller trucks.
- Boda bodas (motorbikes). Dominated by Watu Credit and M-KOPA Mobility (electric). See boda boda financing real cost.
- Tuk-tuks (three-wheelers). Financed by Mogo and Watu Africa in some counties.
- Tractors. Financed by Watu Simba (Watu's farming brand) and commercial banks with agri desks.
- Generators, medical and industrial equipment. Bank-dominated. Some non-bank asset financiers accept high-value equipment against dealer partnership.
Non-bank asset finance vs banks
| Dimension | Non-bank asset finance | Bank asset finance |
|---|---|---|
| Typical deposit | 10 to 25 percent | 20 to 30 percent |
| Rate | Effective APR ~40 to 90 percent | 14 to 20 percent per year |
| Term | 12 to 36 months | 36 to 60 months |
| Approval speed | Same day to 3 days | 1 to 3 weeks |
| Documentation | ID, PIN, M-PESA statements, guarantor | Full KYC, income proof, credit history |
Real cost math (worked example)
A KES 200,000 boda boda financed by a non-bank lender at a KES 20,000 deposit over 24 months typically ends up costing roughly KES 380,000 to KES 500,000 in total when tracker, insurance, and weekly instalments are summed. That is 1.9x to 2.5x the cash price. A KES 1,000,000 used car financed by a bank at 15 percent per year over 48 months with a 30 percent deposit repays roughly KES 1,240,000 total, or 1.24x the cash price. The gap between non-bank and bank asset finance is the price you pay for speed and light documentation.
FAQ
What is asset finance in Kenya?
Asset finance is a loan used to buy a specific productive asset, with that asset serving as the security. Common assets financed in Kenya include cars, matatus, trucks, boda bodas (motorbikes), tuk-tuks, tractors, generators, medical equipment, and printing machinery. The asset is usually registered in the lender's name until final payment.
How does asset finance differ from a logbook loan?
A logbook loan gives you cash against a vehicle you already own. Asset finance funds the purchase of an asset you do not yet own, and the lender takes title. Watu Credit is asset finance for boda bodas. Mwananchi and Ngao are logbook loans against a vehicle you already own.
Which lenders offer asset finance in Kenya?
Non-bank asset financiers include Watu Credit (boda bodas), Mogo (cars and tuk-tuks), M-KOPA Mobility (electric bikes), Mwananchi Credit (car asset finance), Momentum Credit (motor import and SME asset finance) and Progressive Credit. Banks such as KCB, Equity, Co-op, Family, ABSA, NCBA and Stanbic offer bank-rate asset finance to salaried borrowers and SMEs.
What is the typical deposit for asset finance in Kenya?
Non-bank asset finance usually requires 10 to 25 percent deposit. Bank asset finance for SMEs typically requires 20 to 30 percent. Watu Credit boda boda financing has some of the lowest deposits (KES 10,000 to KES 30,000 on a KES 200,000 bike). Mogo car finance requires around 30 percent deposit.
What is the effective cost of asset finance in Kenya?
Non-bank asset finance often carries effective APRs of 40 to 90 percent when the total repayment is spread over the term (illustrative: KES 200,000 boda boda repaid at roughly two to three times the cash price over 24 months). Bank asset finance sits at 14 to 20 percent per year for eligible customers. The gap is real; only take non-bank asset finance when a bank has closed the door.
Is asset finance in Kenya regulated?
The lenders are. Non-bank asset financiers are licensed as Digital Credit Providers (DCPs) by the Central Bank of Kenya. Public register at centralbank.go.ke/digital-credit-providers. Banks offering asset finance are regulated as commercial banks by CBK.