Nine microfinance products from 7 CBK-licensed institutions compete in Kenya's 2026 market. Interest rates range from 15% (Letshego and Caritas) to 18% (Faulu Personal, KWFT Personal, Rafiki). Faulu Biashara leads for business lending with up to KES 5 million, while KWFT dominates group lending with 800,000+ active clients.
Product Comparison Table
| Product | Provider | Rate | Amount | Tenure | Best For |
| Biashara Loan | Faulu | 16% p.a. | KES 30K-5M | Up to 60 mo | Business expansion |
| Personal Loan | Faulu | 18% p.a. | KES 20K-3M | Up to 48 mo | Emergency needs |
| Group Loan | KWFT | 16% p.a. | KES 5K-500K | Up to 36 mo | Women's groups |
| Personal Loan | KWFT | 18% p.a. | KES 10K-3M | Up to 48 mo | Individual women |
| Microfinance Loan | Caritas | 15-20% p.a. | KES 5K-2M | Up to 36 mo | Church communities |
| Personal Loan | Letshego | 15% p.a. | KES 10K-1M | Up to 36 mo | Salaried workers |
| Microfinance Loan | Rafiki | 18% p.a. | KES 10K-1.5M | Up to 36 mo | Central Kenya SMEs |
| Microfinance Loan | Sumac | 16% p.a. | KES 10K-2M | Up to 36 mo | Urban entrepreneurs |
| Personal Loan | Fortune Credit | Varies | Varies | Varies | Asset-backed |
Best for Business Growth: Faulu Biashara
Faulu's Biashara Loan offers the highest ceiling in microfinance at KES 5,000,000. At 16% per annum, it is competitive for business borrowers who cannot qualify at commercial banks. Repayment extends to 60 months, the longest tenure among microfinance products.
What makes Faulu stand out: they accept business cash flow records rather than formal financial statements. A mama mboga with 6 months of consistent M-Pesa transaction records can qualify. Their loan officers conduct business site visits within 48 hours of application.
Processing fee is 3% of the loan amount. Credit life insurance adds approximately 1% per year. For a KES 1,000,000 Biashara loan, expect approximately KES 30,000 in upfront fees plus KES 10,000/year in insurance.
Best for Group Lending: KWFT
Kenya Women Finance Trust is the largest microfinance lender by client count. Their group model has been refined over 40+ years. Groups of 15-30 members meet weekly, save together, and guarantee each other's loans.
The KWFT Group Loan starts at KES 5,000, the lowest entry point in formal microfinance. Maximum is KES 500,000 per member. At 16%, it is 2% cheaper than KWFT's own individual product. The group training program covers bookkeeping, business planning, and savings discipline.
KWFT has agents in all 47 counties, with the deepest rural penetration of any microfinance bank. If you are outside Nairobi and Mombasa, KWFT is likely the most accessible microfinance lender.
Best Rate: Letshego Personal Loan
Letshego offers the lowest flat rate at 15% per annum on amounts from KES 10,000 to KES 1,000,000. The catch is the lower ceiling. If you need under KES 1 million and have a steady income, Letshego is mathematically the cheapest option.
As part of a pan-African group (operating in 11 countries), Letshego brings institutional strength and digital processing capabilities. Their mobile app allows loan applications, disbursement tracking, and repayment management without branch visits.
Letshego processes applications in 48-72 hours. They require 3 months of income evidence but are flexible on the format: payslips, bank statements, or M-Pesa statements all accepted.
Best for Small Amounts: Caritas Microfinance
Caritas starts at KES 5,000, matching KWFT for the lowest entry point. At 15% for group loans (going up to 20% for unsecured individual loans), Caritas serves community-level borrowers who need small, quick injections of capital.
Church-affiliated but open to all borrowers. Caritas leverages church community structures for group formation and loan monitoring. If you are active in a church community, your pastor's endorsement can accelerate the application process.
Cost Comparison: KES 300,000 Over 24 Months
| Lender | Rate | Monthly Payment | Total Interest | Total Cost |
| Letshego | 15% | KES 14,550 | KES 49,200 | KES 358,200 |
| Faulu Biashara | 16% | KES 14,750 | KES 54,000 | KES 363,000 |
| KWFT Group | 16% | KES 14,750 | KES 54,000 | KES 363,000 |
| Sumac | 16% | KES 14,750 | KES 54,000 | KES 363,000 |
| Caritas (mid) | 17.5% | KES 15,050 | KES 61,200 | KES 370,200 |
| Faulu Personal | 18% | KES 15,200 | KES 64,800 | KES 373,800 |
| KWFT Personal | 18% | KES 15,200 | KES 64,800 | KES 373,800 |
| Rafiki | 18% | KES 15,200 | KES 64,800 | KES 373,800 |
Difference between cheapest (Letshego) and most expensive (18% lenders): KES 15,600 over 2 years.
How to Choose
Choose group lending if: you can form a reliable group of 10+ people, need under KES 500,000, want lower rates, and can commit to weekly meetings.
Choose individual lending if: you need more than KES 500,000, want flexible repayment schedules, have collateral available, and prefer privacy in your financial transactions.
Choose Faulu if: your primary need is business expansion and you want the highest possible loan amount from a microfinance institution.
Choose KWFT if: you are a woman borrower, especially in a rural area, and want the support structure of group-based lending.
Choose Letshego if: you want the lowest rate and need under KES 1 million. Best for salaried workers who do not qualify at commercial banks.
Frequently Asked Questions
Q: Is microfinance regulated in Kenya?
Yes. Deposit-taking microfinance banks are regulated by the Central Bank of Kenya under the Microfinance Act (2006). As of 2026, 14 institutions hold CBK microfinance licenses. Check cbk.go.ke for the current list. Non-deposit-taking MFIs are regulated under the Companies Act.
Q: Can I get a microfinance loan without collateral?
Group loans from KWFT, Caritas, and Faulu require only group guarantee, no physical collateral. Individual loans under KES 100,000 may also be unsecured at some lenders. Above KES 100,000, expect to provide a logbook, household assets, or title deed.
Q: How fast can I get a microfinance loan?
Individual loans: 48 hours to 2 weeks depending on amount and documentation. Group loans: first-time groups need 2-4 weeks for formation and training, then 1-2 weeks for disbursement. Repeat borrowers get faster processing.
Q: What is the difference between a microfinance bank and a SACCO?
Microfinance banks are licensed by CBK and can take deposits from the public. SACCOs are member-owned cooperatives regulated by SASRA, and you must be a member to borrow. SACCOs often offer lower rates (10-12%) but require months of savings before you can borrow.