The Central Bank of Kenya (CBK) and the Kenya Bankers Association (KBA) have launched Cost of Credit website to offer consumers greater choice from a range of loan and credit products across the industry. The platform provides information on fees and charges relating to loan products offered by commercial banks and microfinance banks; specifically, personal secured loans, personal unsecured loans and mortgage loans.

The following Charges are levied by external parties and may be beyond the Bank’s control:

Legal Fees: The amount indicated is charged by the appointed external Lawyers according to the Advocates (Remuneration) (Amendment) Order, 2014 (as varied or amended). It does not include VAT and disbursements as these will be clear after the Lawyers have completed their work.

Insurance: The amount indicated above is charged by the Insurer on the basis of the Option selected by the borrower for the period of the Facility. Insurance includes Mortgage Protection, Credit Life Insurance, Fire Insurance, Property Insurance and Car Insurance, where applicable.

Government Levies: This means Excise Duty at 10% of the Application / Processing / Initiation/ Arrangement/ Commitment Fees charged. The estimate provided in this calculator does not include VAT and other Government Levies.

Stamp Duty: This is a Government Levy on sale of property charged typically between 1% and 4% of the value of the property.

Valuation Fees: The amount indicated is charged by the appointed Valuers according to the Land Valuers Licensing (Remuneration) Notice 2013 (as varied or amended). It does not include VAT and Disbursements as these will be clear after the valuation work is complete.

Security Registration Fee:The amount is payable to the Government Registry where the Security will be registered and has not been indicated within this online APR calculator.

Other Third Party Costs: There are other costs associated with the facility that may not be within the lender’s purview and therefore have not been factored into this APR calculator.

There are various costs associated with a loan. These costs are in addition to the interest rate component, and range from bank fees and charges to third party costs, such as legal fees, insurance and government levies.

Because loan applicants will tend to focus only on the interest rate when making a loan decision, banks have proactively adopted the Annual Percentage Rate or APR model which converts all direct costs associated with the loan (also known as the Total Cost of Credit) into one number.

*Source Cost of Credit