Search for Savings & Loans
Why are So Many Kenyans Taking Logbook Loans?
Why are So Many Kenyans Taking Logbook Loans?
See The Best Loans Available in Kenya Today
Money Management

Why are So Many Kenyans Taking Logbook Loans?

Doris Kendi
April 11, 2022

Few Kenyans have the cash they need at hand to pay for big-ticket expenses upfront. As such, it is not unusual to see people looking for loan options, in order to be able to pay for these costly expenses over time. A logbook loan is one such option. 

A logbook loan comes with various advantages. First, it is probably the only currently available option that allows you to access a substantial amount of money within the shortest time possible - you can get 50-80% of your car’s value.

Second, other than digital loans, logbook loans are easily accessible.  As long as you are eligible and own a car, you can quickly find a lender and get the loan processes and the money disbursed within 24 hours only.  

That said, people apply for these loans for different reasons. This article discusses some of the popular reasons Kenyans choose logbook loans over other types of loans. 

Start or Expand a Business

Starting a new business is no easy feat. In addition, most existing businesses need regular cash injections before they break even and become self-sustaining - and loans are a great way to cash for these injections. 

However, although a business loan is the best option for any business, they are not always easy to obtain, especially compared to personal loans. Hence, one of the most popular reasons Kenyans take logbook loans (one of the most convenient personal loan options) is to start and expand their businesses. 

Not only are logbook loans easily accessible - compared to even some other types of personal loans - but once they are approved, you can use the money in any way you need to propel your business forward. 

Also read: Business Loans vs. Personal Loans: How They Compare

Make Quick Investments

As they say, ‘opportunity knocks only once.’ 

The truth is, not many Kenyans have money lying around for when an opportunity comes knocking. For example, let's say you find a very good ‘deal’ on a piece of land in a prime area, but you do not have the money. 

You start imagining how you could develop it or even use it to speculate. You are sure you can’t let that opportunity slip by. What do you do? If you own a car, a logbook loan can be exactly what you need at that exact moment. This is another popular reason Kenyans go for logbook loans. 

Because, unlike many other loans, like digital loans, the loan is based on the value of your vehicle, and you can, therefore, borrow as much as you need up to 50-80% of your car value - depending on the lender.

Debt Consolidation

Logbook loans can be used as a form of debt consolidation. It is also one of the main reasons why many Kenyans consider logbook loans. 

If you are stuck with a few loans that need your attention every month, you can take out a logbook loan, pay off the balance of your outstanding loans and then make one payment to your new logbook loan lender. Debt consolidation makes it easier to manage your liabilities as a single unit.

In addition, if you are already in the red, it is a great way to lower your stress levels because you will not be getting dozens of calls from different debt collectors. 

Also read: Are You Stuck in a Debt Cycle? Here Are 6 Tips to Help You Break Away

Medical Emergency

One of the major expenses Kenyans incur is medical bills. In some cases, hospitals need full payment before starting any medical procedure. It can be a hassle when you or your loved one need urgent medical attention. 

Hence, in cases where the medical bill is above the amount at hand - and no medical cover is in place - many Kenyans turn to loans to help raise the funds for medical care. 

Due to their efficiency and urgency, logbook loans are a popular option in such instances. A logbook loan allows you to access a significant amount urgently - sometimes even within hours depending on the lender. 

Cash Injection For Stalled Projects 

Many Kenyans turn to logbook loans when their project funds run dry and leave the project stalled. 

For example, suppose you are building your dream home and the expenses go above the budget before completion. In such a case, a logbook loan is a solid solution. You can use your vehicle as collateral to acquire funds to complete the project, and then pay back the funds later on. 

Also, to some people, spending a few thousands a month to pay back a loan is more practical than dropping Ksh.500,000 at once to do the finishing on a completed house.

Financing Weddings and Other Special Occasions 

Another popular reason Kenyans go for logbook loans is to pay for weddings and other special occasions. 

On average, a wedding in Kenya costs over Ksh.500,000. For couples who have no way of raising this amount, a logbook loan can allow them to cover these costs now and pay back the loan later.  

During a wedding, a logbook loan can come in handy to help pay for big expenses such as food for the guests, wedding venue, photography, etc. Some couples also take logbook loans for dowry payment or to help make the engagement as perfect as possible. 

Also read: 10 Key Financial Moves To Make Before Marriage

School Fees 

Education in this country can be costly - especially college or university education. It is not uncommon to see students or even parents take out quick loans to help pay (or top-up) school fees.

Although student loans like HELB are the best option to pay for education, they are not available for everyone, and even when they are, they might not be sufficient to cover all school-related expenses. 

In such cases, a parent or a student might need to turn to other available options like logbook loans to help pay these expenses.

Also read: Who Qualifies for HELB Loans; Undergraduate, TVET, Graduate, and Scholarships

When Moving or Relocating 

If you are moving within the same town, you might not need to spend a lot on moving expenses. However, if you are moving to a different town or maybe even outside the country, you might need a lot more to cover the cost of packing, hiring movers, and transporting your belongings to your new residence. 

In addition, if you are moving into an apartment, you might need to cover the costs of the first month, last month, and a security deposit. In some cases, you may also need some cash to furnish your new home.

Some Kenyans find logbook loans a convenient and easy way to get quick cash top-up to help through the process of moving and settling in a new place. 

A Major Life Change

There are also many other significant life changes that prompt Kenyans to take out a logbook loan. Things such as divorce, career changes, death of a loved one, etc. 

These changes come with emotional and financial costs that if you are not very well prepared financially, you might need a quick fix to help save the day. And a logbook loan can be just the fix you need to help position you so you can plan yourself for the future. 

It is always advisable to have an emergency fund for such situations, but if you’re in a pinch and need money to hold you over, you may be able to get a logbook loan in a matter of days (even hours depending on the lender.


Logbook loans are a great option because you can use them for virtually anything. You can use a logbook loan to cover an emergency or as a boost when you have a stalling project or even to pay for a professional course in order to get a promotion at work. 

However, although logbook loans come in handy when you need a boost, it is important to research and compare different options before you commit. On our logbook loan comparisons page, we have got all the tools you need to pick the best lender that fits your needs. 

Doris is a finance professional, freelance writer and SEO expert. She has experience helping businesses of all sizes create content that helps improve their site quality and increase their online traffic. She is a personal finance and wealth creation enthusiast and a frequent contributor to Money254. Visit Doris' personal website to learn more about her work.

Learn more about Personal Loans available in Kenya on Money254

Money 254 is a new platform focused on helping you make more out of the money you have. We've created a simple, fast and secure way to find and compare financial products that best match your needs. All of the information shown is from products available at established financial institutions that our team of experts has tirelessly collected.

Instantly search loan products from established providers in Kenya and compare on the terms that matter most to you.
Find the best Personal Loans for me

Don't miss another article - download the new Money254 App Today

Get it on Google Play

Sign up for our newsletter and get weekly money tips to your inbox.

Get updates from the Money254 team on financial news and new Money254 features.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.