The Short Answer
Yes, you can get a loan with bad credit in Kenya. Mobile money loans (Fuliza, M-Shwari) don't use CRB at all - they assess your M-Pesa transaction history. App-based lenders (Branch, Tala) check CRB but heavily weight other factors like phone usage and behavior patterns.
Lenders That Approve Bad Credit Loans
| Lender | CRB Check? | Max Amount | Rate | Approval |
|---|---|---|---|---|
Fuliza M-Pesa history only | No | KES 70,000 | 1.083% daily | Instant |
M-Shwari M-Pesa + savings history | No | KES 100,000 | 9% facility fee | Instant |
Branch Phone data + M-Pesa | Yes (not decisive) | KES 500,000 | From 1% monthly | 5-10 mins |
Tala Phone data + behavior | Yes (not decisive) | KES 50,000 | From 6% monthly | 5-10 mins |
Zenka M-Pesa + alternative data | Yes (flexible) | KES 30,000 | From 9% monthly | 5-15 mins |
Hustler Fund Citizen status only | No | KES 50,000 | 8% annual | Instant |
= Recommended for bad credit
Common Reasons for Bad Credit in Kenya
How to Get a Loan with Bad Credit: Step by Step
Check Your Current CRB Status
Know exactly what's on your record. Use *987# (TransUnion) or *433# (Metropol) for a free check.
Build M-Pesa Transaction History
Use M-Pesa regularly for at least 3 months. Consistent transactions improve your mobile loan limits.
Start with No-CRB Lenders
Apply to Fuliza or M-Shwari first. These don't check CRB and help you build positive loan history.
Repay Perfectly
Pay back early or on time. This builds your internal credit score with these lenders.
Graduate to Larger Loans
After 3-6 months of good repayment, apply to Branch or Tala for larger amounts.
Consider Clearing Your CRB
If possible, pay off old debts and get clearance letters to improve future options.
Warning: Avoid These Traps
- Loan sharks: Unregistered lenders charging 30%+ monthly rates
- Upfront fees: Legitimate lenders never ask for fees before disbursing
- Multiple simultaneous loans: This worsens your credit situation
- "CRB clearance" scams: Only lenders can update CRB after you pay
Frequently Asked Questions
Can I get a loan if I have bad credit in Kenya?
Yes! Mobile loans like Fuliza, M-Shwari, Branch, and Tala use M-Pesa transaction history instead of CRB. Some microfinance and SACCOs also lend to those with negative credit listings.
Which lenders don't check CRB in Kenya?
Fuliza and M-Shwari primarily use M-Pesa history. Branch and Tala check CRB but weigh other factors heavily. Some microfinance institutions and chamas don't check CRB at all.
How can I improve my chances of getting a loan with bad credit?
Build strong M-Pesa transaction history, start with small loans and repay on time, join a SACCO, provide collateral or guarantors, and consider clearing your CRB listing first.
What interest rates can I expect with bad credit?
Expect higher rates: 15-25% monthly for digital loans vs 10-15% for those with good credit. Secured loans or SACCO loans may offer better rates even with bad credit.
Ready to Apply?
Compare lenders that approve bad credit loans today.