Logbook loans in Kenya (2026)

A logbook loan is a short-term secured loan where the lender takes ownership of your vehicle logbook (the registration document) as security until you repay the loan in full. You continue to drive the car. If you default, the lender can repossess and sell the vehicle to recover the debt.

The main licensed non-bank logbook lenders in Kenya include Mwananchi Credit, Momentum Credit, Ngao Credit, Platinum Credit and Progressive Credit. All are licensed as Digital Credit Providers (DCPs) by the Central Bank of Kenya. Watu Credit and Mogo also finance vehicles but originate their loans as asset finance, not logbook-secured cash loans.

Typically 40 to 60 percent of the professional valuation of your vehicle. A car valued at KES 700,000 might raise KES 280,000 to KES 420,000. Some lenders (Ngao) offer up to 60 percent of market value; others (Platinum) cap at 60 percent of forced sale value, which is a lower base.

Take the total repayable amount (principal plus all interest, fees, valuation, insurance, chattels registration), work out the average outstanding balance over the loan term, and annualise. A typical Kenyan logbook loan at 3 to 5 percent per month reducing balance, plus a 3 percent arrangement fee and around KES 10,000 in fees, prices at an all-in APR of roughly 40 to 80 percent. Ask for the total cost of credit disclosure under CBK rules.

Under the CBK Digital Credit Providers Regulations 2022, a licensed DCP must issue written notice of default and give a reasonable cure window before enforcement. In practice this is often a seven-day window under the industry code of conduct. If arrears persist, the lender can repossess the vehicle under the Chattels Transfer Act, sell it at auction and use the proceeds to clear the debt. Any shortfall remains a debt and any surplus (rare) is returned to you.

Yes. The lender takes the logbook, not the car. You continue to drive it, insure it and pay road maintenance. On final settlement the lender releases the logbook and the vehicle registration transfers back into your name.

Most licensed lenders require the vehicle to be under 15 years old (some cap at 10 years), registered in your name, in good running condition and comprehensively insured for the loan term. Classic collateral cars include Toyota Probox, Toyota Vitz, Toyota Fielder, Toyota Axio, Nissan Note, Mazda Demio and Subaru Forester because their resale market is deep and predictable.

Almost always no. A Kenyan bank car loan for an in-stock used vehicle runs at 13 to 17 percent per year. A logbook loan typically runs at 40 to 80 percent effective APR. Logbook loans exist because they lend against a car you already own (a bank car loan finances a car you are buying) and because they approve quickly with light documentation. Speed and access, not price, are the reasons to use them.

A logbook loan gives you cash against a vehicle you already own; the vehicle is your collateral. Asset finance funds the purchase of a new asset, whose title vests in the lender until final payment. Watu Credit is asset finance for boda bodas; Mwananchi and Ngao are logbook loans against a vehicle you already own.

Ask each for a total cost of credit disclosure on the same principal and term. The winner on APR is not always the winner on flexibility (restructuring terms), branch coverage or reputation for fair repossession practice. Read the FAQs on each lender hub for the operational detail before picking.