Mobile loan apps have transformed credit access in Kenya, providing instant loans with minimal paperwork. Over the past decade, they have become a lifeline for students, workers, and small business owners, offering quick cash solutions directly through mobile phones.
Some of the most popular apps include:
- Branch
- Tala
- Zenka
- M-Shwari
- KCB M-Pesa
- Eazzy Loan (Equity Bank)
- Okash
- Zash Loan – Get Loan Instantly
- Little Pesa Mobile Loans
- Timiza (ABSA Bank)
- PesaPap (Family Bank)
- Chapeo Cash
- VOOMA (KCB Group)
- HF Whizz
- iPesa
Each app promises fast approval, cash disbursement within minutes, and flexible repayment terms—but the reality is often more complicated.
Comparison of Popular Loan Apps in Kenya
| Loan App | Loan Limit Range | Repayment Period | Interest Rate / Fees |
| Branch | KSh 1,000 – 300,000 | 4 – 52 weeks | 2% – 18% monthly |
| Tala | KSh 500 – 50,000 | 21 – 30 days | 7% – 15% per month |
| Zenka | KSh 500 – 50,000 | 7 – 61 days | 9% – 30% (first loan interest-free) |
| M-Shwari | KSh 100 – 50,000 | 30 days | 7.5% facility fee |
| KCB M-Pesa | KSh 1,000 – 1,000,000 | 1 – 12 months | 7.5% per month |
| Eazzy Loan | KSh 1,000 – 3,000,000 | Flexible (bank terms) | 13% – 14% annually |
| Okash | KSh 500 – 50,000 | 14 – 91 days | 14% – 25% monthly |
| Zash Loan | KSh 500 – 20,000 | 7 – 30 days | 10% – 25% monthly |
| Little Pesa | KSh 500 – 30,000 | 14 – 60 days | 15% – 20% monthly |
| Timiza (ABSA) | KSh 50 – 150,000 | Up to 30 days | 7% + 5% processing fee |
| PesaPap (Family) | KSh 500 – 100,000 | 30 days | 7% facility fee |
| Chapeo Cash | KSh 500 – 20,000 | 7 – 30 days | 10% – 25% monthly |
| VOOMA (KCB) | KSh 100 – 300,000 | 30 days | From 7.5% monthly |
| HF Whizz | KSh 1,000 – 50,000 | 30 days | 7% facility fee |
| iPesa | KSh 500 – 50,000 | 14 – 91 days | 15% – 30% monthly |
(Figures are indicative and may vary depending on credit history, usage, and app updates.)
Convenience Comes at a Cost
While loan apps offer unmatched speed, they also come with serious challenges:
- High Interest & Hidden Fees: Some apps charge as high as 25% per month, which is significantly higher than traditional banks.
- Short Repayment Periods: Most apps expect repayment within 7 to 30 days, often too short for sustainable repayment.
- Harsh Collection Methods: Borrowers have reported being harassed through calls and texts, with some lenders even contacting friends and family.
- Privacy Risks: Many apps demand access to contacts, SMS, and call logs, raising concerns about data misuse.
- Fake and Unlicensed Apps: Some apps disappear after collecting repayments, leaving users without recourse.
Regulation and Consumer Protection
To address these risks, the Central Bank of Kenya (CBK) now requires all Digital Credit Providers (DCPs) to be licensed. This ensures better monitoring of fees, privacy standards, and debt collection practices.
Kenyans are advised to check if a loan app is CBK-licensed before borrowing.
