Vehicle finance repayment including deposit and insurance.
Monthly outgoing
—
Loan amount
—
Total interest
—
Total cost of ownership
—
Your breakdown
Updates live as you type
Item
Value
Worked example
Take a car priced at KES 2,000,000 with a KES 400,000 deposit, financed at 16% a year over 48 months, plus KES 60,000 a year for comprehensive insurance. The loan is the price less the deposit, KES 1,600,000. On a reducing balance at 16% over 48 months the loan repayment is KES 45,344.45 a month, and insurance adds KES 5,000 a month, so the all-in monthly cost is KES 50,344.45.
Over the four years the interest is KES 576,533.57 and insurance is KES 240,000, so the car that listed at KES 2,000,000 costs KES 2,816,533.57 in total. The chart below splits that total cost into three parts.
How it is calculated
The financed amount is the purchase price minus your deposit. That loan is amortised on a reducing balance using the standard formula, where the monthly payment equals the loan times the monthly rate times (1 plus the monthly rate) raised to the number of months, divided by that power minus one. The monthly rate is the annual rate divided by 12. Annual insurance is spread evenly over the months and added to the loan repayment to give a true all-in monthly figure, because in Kenya comprehensive cover is usually mandatory while the car is financed. Total cost adds the original price, the total interest over the term, and the insurance paid across the term, so it reflects everything you part with rather than just the loan. A larger deposit cuts both the monthly payment and the total interest, and a shorter term raises the monthly payment but reduces total interest, which is the trade-off to weigh before signing.
Frequently asked questions
How does asset finance work for a car in Kenya?
A bank or SACCO lends the vehicle price less your deposit, secured against the car, and you repay on a reducing balance over the term. Comprehensive insurance is usually compulsory while the loan runs, so this calculator adds the annual premium spread over twelve months. The total cost of ownership is the price plus all interest and all insurance paid across the term.
What deposit do Kenyan banks require for car loans?
Most commercial banks and SACCOs require a deposit of between 10% and 30% of the vehicle value for asset finance in Kenya. A higher deposit reduces the financed amount, which lowers monthly repayments and the total interest paid over the term. Some institutions offer 100% financing for certain salary-advance or payroll-deduction products, but these typically carry higher interest rates.
Which Kenyan banks and SACCOs offer competitive car loan rates?
Interest rates on vehicle asset finance in Kenya vary by lender and borrower profile. Commercial banks such as KCB, Equity, Co-operative, and Stanbic generally quote annual rates between 13% and 17% on a reducing balance. Many SACCOs offer lower rates, often between 10% and 14%, but require membership and a share-capital contribution. Comparing the reducing-balance rate rather than the flat rate gives you a more accurate cost comparison.
Does the Kenya Revenue Authority charge duty on imported vehicles?
Yes. Vehicles imported into Kenya attract import duty, excise duty, and VAT calculated by KRA on the customs value. The combined tax burden can add 50% to 100% to the cost of an imported vehicle depending on engine size, age, and whether it is a passenger car or commercial vehicle. This calculator uses the total purchase price you enter, which should already include all duties and clearance costs if you are buying an imported vehicle.