Quickly estimate your KCB M-PESA loan fees and repayment amounts. Learn how to increase your limit and understand the 9.04% facility fee.
Fees consist of 8.85% interest and 0.19% insurance. Repayment is required within 30 calendar days.
KCB M-PESA Loan
KCB M-PESA is a mobile-based account that allows M-PESA customers to borrow instant unsecured loans ranging from KES 50 to KES 1,000,000. Unlike traditional bank loans, these are short-term facilities designed for emergency liquidity, repayable within 30 days. Use the KCB M-PESA Loan calculator above to see exactly how much the 9.04% fee and excise duty will cost you.
Related: KCB Loan Calculator
Fees, Limits, and Repayment
Understanding the cost of mobile credit is essential to avoid “debt traps.” Here is the breakdown of how KCB M-PESA works:
1. Cost of Borrowing
The loan carries a 9.04% facility fee per month. This is broken down as:
- 8.85% Interest Rate
- 0.19% Insurance Premium
- Note: A 20% Excise Duty is charged on the fees, as per the Finance Act.
2. How to Increase Your Limit
Your loan limit is determined by your “Credit Score” within the Safaricom and KCB ecosystem. To increase it:
- Increase Savings: Keep money in your KCB M-PESA Fixed Savings or Target Savings account.
- Utilize M-PESA: Use M-PESA for frequent transactions (Paybill, Till, Airtime).
- Repay Early: Consistently repaying loans before the 30-day deadline significantly boosts your limit.
FAQs:
What are the current mortgage rates in Kenya?
As of 2026, market mortgage rates fluctuate between 12% and 16%. However, through the Kenya Mortgage Refinance Company (KMRC), several banks (including KCB) offer subsidized “Affordable Housing” loans at a fixed rate of 9% for households earning below a certain threshold.
How much mortgage can I afford in Kenya?
Lenders typically follow the 40% rule, where your monthly mortgage repayment should not exceed 40% of your gross monthly income.
- Example: If you earn KES 100,000, your maximum EMI (Equated Monthly Installment) should be KES 40,000.
Which bank is best for a mortgage?
KCB Bank is widely considered the “best” for home buyers due to its specialized S&L Mortgage wing, which offers the widest variety of products, including construction loans, plot purchases, and turnkey house purchases. Absa Kenya is also highly rated for its “cash-back” offers and quick approval timelines.
Also see: Kenya Mortgage Calculator
