Total Cost of a Mobile Loan in Kenya (2026): What You Pay Beyond Interest

The total cost of a mobile loan in Kenya is almost always higher than the advertised interest rate suggests. Between facility fees, government excise duty, insurance charges, and daily maintenance costs, a headline “7.5% loan” can end up costing significantly more once fees compound.

What Makes Up the Total Cost of a Mobile Loan

• Principal: The exact amount borrowed. All fees are calculated as a percentage of this baseline.
• Facility/Processing Fee: An upfront fee charged by the lender, typically ranging from 5% to 9.06% of the principal per 30-day term.
• Excise Duty: A mandatory 20% government tax applied directly to the loan’s fees and charges (not the principal itself).
• Daily Maintenance Fee: Applied by overdraft services like Fuliza based on your balance band, charged every 24 hours until fully repaid.
• Insurance Fee: A small charge (typically 0.03% to 1%) levied by select bank apps to cover loan default protection.

2026 Mobile Loan Provider Cost Comparison

Provider	Fee Structure	Excise Duty Impact	Disbursed Amount (on KES 10,000)	Total Repayment Due
Hustler Fund	8% p.a. prorated daily	None	KES 10,000	~KES 10,066 (if paid in 30 days)
M-Shwari	7.5% flat facility fee	20% on fee (KES 150) deducted upfront	KES 9,850	KES 10,750
KCB M-Pesa	9.06% flat facility fee	Included in published fee	KES 10,000	KES 10,906
Fuliza	1% access fee + daily band fee	20% added onto daily maintenance fees	KES 10,000	Varies by days held (~KES 10,950 for 30 days)
Equity Boostika	5% fee + 1% insurance + 18% p.a. interest	20% on processing fee	KES 9,900	~KES 10,750

Note: Published rates reflect mid-2026 figures. Lenders adjust tariffs periodically; always confirm terms via USSD or official app menus before borrowing.

Fuliza vs. M-Shwari: The Real Cost Gap

• 7-Day Borrowing (KES 5,000): Fuliza charges a 1% access fee (KES 50) plus daily fees (~KES 30/day incl. excise), totaling ~KES 260. M-Shwari charges a flat 7.5% fee plus excise (~KES 450 total). Winner: Fuliza.
• 30-Day Borrowing (KES 5,000): Fuliza’s daily maintenance fee repeats for 30 days, totaling ~KES 950. M-Shwari’s total fee remains capped at KES 450 regardless of whether you pay on day 8 or day 30. Winner: M-Shwari.

Fuliza is an overdraft meant for short gaps of a few hours or days. Holding a Fuliza overdraft for an entire month is one of the most expensive borrowing habits in Kenya.

Worked Example: KES 10,000 KCB M-Pesa Loan (30 Days)

• Principal Borrowed: KES 10,000
• Facility Fee (9.06%): KES 906
• Cash Received in M-Pesa: KES 10,000
• Total Repayment Due (Day 30): KES 10,906
• Effective Cost of Credit: KES 906
• Annualized Percentage Rate (APR): ~110.2% p.a.

Mobile loan APRs look high because short-term 30-day fees are mathematically multiplied across a 365-day year. APR is useful for comparing products against each other, not as an actual annual charge.

How to Calculate Total Mobile Loan Cost Yourself

1. Calculate Facility Fee: Loan Amount X Fee Percentage
2. Calculate Excise Duty: Facility Fee X 0.20
3. Calculate Interest/Insurance (if separate): Loan Amount X Rate
4. Total Cost of Credit: Facility Fee + Excise Duty + Interest + Insurance

Frequently Asked Questions

• What is the cheapest mobile loan in Kenya?The Hustler Fund (8% per annum, prorated daily) is currently the cheapest mobile borrowing option, followed by M-Shwari for 30-day terms.
• Why did I receive less money than I borrowed on M-Shwari?M-Shwari automatically deducts the 20% excise duty on the facility fee upfront from your loan disbursement. You repay the principal plus the 7.5% facility fee at maturity.
• What happens if I roll over my mobile loan?Rolling over a loan triggers new facility fees and excise duty charges for the next cycle. Repeating this process drives effective borrowing costs beyond 200% per year.

Disclaimer: This guide is for educational purposes only and does not constitute financial advice. Always verify current fees on official provider platforms before taking out a loan.