Check-off loans in Kenya (2026)
A check-off loan is a salary-secured loan where the employer deducts the monthly instalment before crediting your net pay to the bank. Because default risk is low, rates are usually the cheapest non-bank credit available to a salaried Kenyan. Verified 2 September 2026.
What is a check-off loan
A lender and your employer sign a Memorandum of Understanding. When you take a loan, the employer agrees to deduct the monthly instalment from your payroll and remit it to the lender directly. On exit or resignation, the employer withholds terminal dues to clear the loan first before paying you the balance.
Employer requirements
- Signed check-off MoU with the lender.
- HR / payroll process to verify each borrower's net pay before approving the deduction schedule.
- Monthly remittance discipline: the lender expects deductions in the same payroll cycle they are taken.
- Enforcement of the statutory two-thirds rule: statutory plus check-off deductions cannot exceed two-thirds of gross pay.
- Loan-clearance notification on employee exit, and withholding of terminal dues to clear the loan.
Which lenders offer check-off loans
- Platinum Credit. Founded 2002 with civil servant and TSC check-off as the flagship product. 52 plus branches. If you are a teacher, the deduction shows on your T-Pay payslip: see our TSC teachers guide.
- Mwananchi Credit. Salary check-off alongside its flagship logbook product. 13 plus branches, 47 counties.
- Momentum Credit. Civil servant loans up to KES 300,000 repaid through payroll deductions.
- Progressive Credit. Government and corporate check-off loans.
- Bank check-off. KCB, Equity, Co-op, Family, DTB and NCBA all run check-off products for salaried customers of partner employers.
- SACCOs. Every deposit-taking SACCO in Kenya uses check-off as its primary loan repayment channel.
Comparison: check-off vs alternatives
| Option | Effective APR | Ticket size | Speed |
|---|---|---|---|
| SACCO development loan | 12 to 16 percent | Up to 3x shares | 1 to 2 weeks |
| Bank check-off | 14 to 20 percent | Up to 5x monthly net | 3 to 7 days |
| Non-bank check-off | 18 to 30 percent | Up to 4x monthly net | 1 to 3 days |
| Bank overdraft | 14 to 22 percent | Up to 1x monthly net | Same day |
| Hustler Fund | ~9 percent | KES 500 starting | Instant on USSD |
FAQ
What is a check-off loan in Kenya?
A check-off loan is a loan where the monthly instalment is deducted directly from your salary by your employer and remitted to the lender before the balance hits your bank account. The deduction is made under a Memorandum of Understanding between the lender and the employer.
Who qualifies for a check-off loan?
Employees of an employer that has signed a check-off Memorandum of Understanding with the lender. TSC teachers, civil servants, parastatals, county government staff, and large private employers are the most common eligible groups. If your employer is not on the lender partner list, you cannot access the check-off product.
What do employers need to do to enable check-off?
Sign a Memorandum of Understanding with the lender authorising salary deductions for consenting employees, verify each borrower's employment and net pay, remit the monthly deduction to the lender before crediting the employee's net salary, and confirm loan clearances on exit. Payroll usually caps total statutory-plus-check-off deductions at two-thirds of gross pay (the two-thirds rule under Kenyan employment law).
Which lenders offer check-off loans in Kenya?
Non-bank lenders: Platinum Credit (TSC and civil servants a specialty), Mwananchi Credit, Progressive Credit, Momentum Credit (civil servant loans up to KES 300,000) and several other DCPs. Banks: KCB, Equity, Co-op, Family, DTB and NCBA all offer check-off facilities to salaried customers of their partner employers. SACCOs: virtually every deposit-taking SACCO in Kenya operates on the check-off principle.
What is the two-thirds rule?
Under Kenyan employment law, statutory deductions plus check-off deductions from an employee's salary cannot exceed two-thirds of gross pay in any month. Payroll systems enforce this cap automatically, which is why a request for a bigger check-off loan can be declined even when the employee wants to borrow more.
How does the interest rate compare to other loan types?
Check-off loans are usually cheaper than logbook loans and much cheaper than mobile app loans because the lender's risk is lower (payroll deduction is a strong recovery channel). Typical effective APR is 18 to 30 percent on non-bank check-off loans, 14 to 20 percent on bank check-off loans, and 12 to 16 percent on SACCO development loans.
What happens if I leave the employer mid-loan?
The loan usually becomes immediately due. The employer withholds your terminal dues (leave pay, gratuity, notice pay) and remits them to the lender to clear the outstanding balance. Any shortfall converts to an unsecured personal debt that the lender will chase through normal collections and the credit reference bureaus.
Check-off loan vs Hustler Fund?
The Hustler Fund is a government-backed unsecured microloan (up to KES 500 starting limit, effective APR around 9 percent). A check-off loan is an employer-verified salary-secured facility with much higher limits (KES 50,000 to KES 5,000,000) but at higher rates. Different products for different needs.