Do Loan Apps Still Work in Kenya 2025? Best Reliable Mobile Loans, USSD Codes & Responsible Borrowing Tips

Introduction

Mobile loans in Kenya feel overwhelming. With dozens of apps promising instant cash, But with high interest rates, hidden fees,scams and frequent rejections, choosing the wrong app can trap you in a cycle of debt.many borrowers struggle to know which options are safe, reliable, and affordable. In 2025, mobile lending remains one of the fastest ways for Kenyans to access emergency funds, settle bills, or boost small businesses.

In this guide, we explore the best still remaining legit loan apps in Kenya 2025, including apps and USSD loan services, highlighting their features, loan limits, interest rates, and repayment terms. We also provide tips on responsible borrowing, helping you make smart financial choices while avoiding hidden charges and debt traps.

1. Tala Loan App

Tala was once one of Kenya’s most popular loan apps, offering instant microloans to millions of users. But in 2025, many borrowers complain that Tala rejects nearly all applications or gives very low limits. Even long-time users find it difficult to qualify for higher amounts. The app focuses heavily on credit scoring, which means if your M-Pesa history or repayment record isn’t “perfect,” you’ll likely face rejection.

Tala is no longer the quick fix it used to be. For most Kenyans, it has become unreliable as a primary loan option.

Loan Range: KES 500 – KES 30,000
Repayment: 21–30 days
Interest Rate: 7–19%
Access: Android app only

Why it’s popular: Tala is among the first mobile loan apps in Kenya, trusted for its speed and flexible limits that increase with good repayment history.

Pros:
✔ Fast approval & disbursement
✔ Higher loan limits with time
✔ Transparent interest breakdown

Cons:
✖ Relatively high interest rates
✖ App-only, no USSD option

2. Branch Loan App

Branch still provides loans, but approval has become tighter compared to earlier years. While some borrowers get access to funds, many report being stuck at very low limits (KES 250 – 1,000) despite years of use. Their interest rates also remain on the higher side, making Branch less appealing for people seeking larger, affordable loans.

Loan Range: KES 500 – KES 50,000
Repayment: Flexible (up to 6 months)
Interest Rate: 2–18% per month
Access: Android & iOS

Why it’s popular: Flexible repayment periods and lower interest rates for consistent users.

Pros:
✔ Long repayment terms
✔ Competitive rates with loyalty
✔ User-friendly app

Cons:
✖ Strict approval for first-time borrowers

3. Zenka Loan App

App like Zenka lure borrowers with “first loan interest free” promotions but quickly reduce approval chances after the first loan.It has high interest rates making more people unable to repay.

Loan Range: KES 500 – KES 30,000
Repayment: 30 days
Interest Rate: 9–39%
Access: Android & iOS

Unique Feature: First loan is interest-free.

Pros:
✔ Free first loan
✔ Clean, fast app
✔ Higher limits for loyal customers

Cons:
✖ High rates after the first loan
✖ Penalties for late repayment

4. M-Shwari (via M-Pesa)

Unlike Tala and Branch, M-Shwari and KCB M-Pesa remain the most reliable because they’re tied directly to your M-Pesa activity. The catch is: if you have irregular deposits or overdrafts, your loan limit stays low. Still, they rarely “block” users completely, making them safer bets compared to most apps.

Loan Range: KES 100 – KES 50,000
Repayment: 30 days
Interest Rate: 7.5% facility fee
Access: M-Pesa app & USSD (*334#)

Why it’s trusted: Backed by Safaricom & NCBA Bank.

Pros:
✔ Accessible via M-Pesa
✔ Instant approval
✔ Savings & loan combo

Cons:
✖ Strict loan limits at the start
✖ Auto-deductions from M-Pesa wallet

5. KCB M-Pesa

Loan Range: KES 100 – KES 1,000,000
Repayment: 30 days
Interest Rate: 7.5% facility fee
Access: M-Pesa app & USSD (*522#)

Pros:
✔ Higher limits than most apps
✔ Backed by KCB Bank & Safaricom
✔ Easy integration with M-Pesa

Cons:
✖ Requires M-Pesa history
✖ Auto-deductions apply

6. Hustler Fund (Government-backed)

Launched by the Kenyan government, Hustler Fund remains one of the most accessible loan options in 2025. It has very low interest rates (0.002% per day) and no hidden fees. However, the loan limits are extremely low for most people (KES 500–2,000), and you must repay on time to gradually increase your limit. Unlike private loan apps, Hustler Fund doesn’t reject applicants completely but it can feel “too small” for people who need meaningful capital.

Loan Range: KES 500 – KES 50,000 (individuals), up to KES 500,000 (groups)
Repayment: 14–30 days
Interest Rate: 8% per year (pro-rated)
Access: USSD (*254#) & M-Pesa app

Why it’s special: Government-backed, lowest interest in the market.

Pros:
✔ Affordable interest
✔ Accessible to everyone (no CRB restrictions)
✔ Savings component

Cons:
✖ Small limits for new users
✖ Very short repayment period

7. Okash and others

Okash and other loans apps on play store are many of the apps that once gave fast cash to new users. Today, in 2025, borrowers report that after the first loan, it becomes harder to qualify again. Interest rates are high, repayment periods are short, and customer support is weak. Many Kenyans consider okash.opesa,lendplus,zashloan,knightloan,truepesa and others a “last resort” loan app rather than a reliable option.

Loan Range: KES 500 – KES 60,000
Repayment: 14–90 days
Interest Rate: 14–16%
Access: Android app

Pros:
✔ Longer repayment than Tala/Zenka
✔ Flexible amounts

Cons:
✖ Higher rejection rate for new users
✖ Aggressive reminders

8. Timiza by Absa

Timiza is a bit more reliable than most loan apps because it’s backed by Absa Bank. It not only offers loans but also bill payments and savings options. However, just like other apps, loan approvals depend on your usage and repayment history. Many users get stuck at low limits (KES 500 – 2,000) for months before they can qualify for more. On the positive side, Timiza has fewer complaints of “total rejection” compared to apps like Tala.

Loan Range: KES 50 – KES 150,000
Repayment: 30 days
Interest Rate: 6.17% facility fee + 1.17% insurance
Access: App & USSD (*848#)

Pros:
✔ Higher loan limits
✔ Offers bill payment & insurance
✔ Backed by Absa Bank

Cons:
✖ Strict eligibility checks

Bank & Sacco Loan Platforms (USSD & Apps)

Don’t overlook the mobile loan services provided by traditional financial institutions. These are often more secure and have lower interest rates compared to standalone apps.

KCB M-Pesa: This is a partnership between KCB Bank and Safaricom. You can access loans from KSh 50 up to KSh 1,000,000. To apply, simply dial *522# or use the M-Pesa app.
M-Shwari: Another product of the Safaricom-NCBA Bank partnership. You can apply for a loan of as low as KSh 100 up to KSh 50,000 through the M-Pesa app or by dialing *334#. It also allows you to save money on a lock savings account.
Fuliza: This is an M-Pesa overdraft service that allows you to complete transactions even when you have insufficient funds in your M-Pesa account. The limit is determined by your M-Pesa usage. To opt-in, dial *234#.
MCo-op Cash: Provided by the Co-operative Bank of Kenya, this service offers short-term loans up to KSh 500,000. You can access it through their mobile app or by dialing the USSD code *667#.
Sacco USSD & Apps: Many saccos, like UN Sacco and NRS DT Sacco, have their own mobile banking platforms. These services are exclusively for members and offer loan products with very favorable terms. You can get details about their specific USSD codes and apps from their respective websites.

Comparison Table: Loan Apps in Kenya 2025

App/Service	Loan Limit	Interest Rate	Access	Repayment	Best For
Tala	500 – 30,000	7–19%	App	21–30 d	Fast loans, loyal users
Branch	500 – 50,000	2–18% monthly	App	1–6 m	Flexible repayment
Zenka	500 – 30,000	9–39%	App	30 d	Free first loan
M-Shwari	100 – 50,000	7.5% fee	USSD	30 d	Trusted M-Pesa users
KCB M-Pesa	100 – 1,000,000	7.5% fee	USSD	30 d	High limits
Hustler Fund	500 – 50,000	8% yearly	USSD	14–30 d	Low-cost loans
Okash	500 – 60,000	14–16%	App	14–90 d	Medium-term loans
Timiza	50 – 150,000	~7% + ins	USSD	30 d	High limits, Absa users

What If You Can’t Get Any Loans From These Apps?

Not everyone qualifies for mobile loans. Many Kenyans face rejections due to low M-Pesa usage, poor repayment history, CRB blacklisting, or lack of a borrowing track record. If you’ve tried several apps without success, here are practical alternatives:

🔹 1. Government & Community Options

Hustler Fund – Still accessible even for those listed on CRB, though limits may be small at first.
SACCOs & Chamas – Community savings and lending groups often offer lower interest and more flexible terms.
Table Banking – Join local groups where members contribute money weekly, then borrow against the pool.

🔹 2. Salary Advances & Employer Loans

If you are employed, consider salary advances. Many employers and banks (like Equity, KCB, and Co-op Bank) provide these at friendlier rates compared to mobile apps.

🔹 3. Build Your Borrowing History

Even if you can’t get loans now, you can prepare for the future by:

Saving on M-Shwari or KCB M-Pesa – Regular deposits boost your creditworthiness.
Using Hustler Fund consistently – Start with small loans and repay on time; your limit will increase over time.

🔹 4. Explore Alternative Financing

Buy Now, Pay Later (BNPL) services like JumiaPay for essentials.
SME-focused digital SACCOs like Stawi.
Pawn/Asset Loans – Last-resort option where you secure a loan against valuable items.

🔹 5. Focus on Hustles Instead of Loans

If borrowing keeps failing, it may be smarter to generate income first instead of relying on debt. Quick-start hustles in Kenya include:

Retail reselling (snacks, mobile accessories, airtime).
M-Pesa agency business.
Online hustles like content writing, forex affiliate marketing, or TikTok/Facebook selling.

Loans should be a tool, not a lifeline. If you can’t access them today, focus on saving, building your credit profile, and starting small hustles that create steady cash flow. Over time, your eligibility for loans will improve.

Unreliable & Risky Loan Apps

Not all loan apps are created equal. Be cautious of apps that engage in predatory practices, such as:

No CBK License: Always check the Central Bank of Kenya’s official list of licensed digital credit providers. If an app isn’t on the list, it’s operating outside the regulatory framework and is not worth the risk.
Excessive & Hidden Fees: These apps often charge exorbitant interest rates and processing fees that aren’t clearly disclosed.
Debt Shaming: Unlicensed lenders are notorious for using unethical tactics, including debt shaming and calling your contacts, to pressure you into repayment.
Accessing Private Data: Some apps are overly intrusive and may request unnecessary access to your photos, contacts, and other personal data on your phone.

Tips for Responsible Borrowing

Only Borrow What You Can Repay: Mobile loans are a quick fix, not a sustainable solution. Don’t take on debt you can’t manage.
Read the Terms & Conditions: Always understand the interest rates, repayment period, and any hidden fees before accepting a loan.
Check for a CBK License: This is the most important step to ensure you’re dealing with a legitimate and regulated lender.
Repay on Time: Timely repayment is crucial for improving your credit score and increasing your loan limits with reliable lenders.

conclusion

In 2025, Kenya’s mobile loan market remains highly competitive, offering solutions for both emergencies and business needs. For low-risk, affordable options, Hustler Fund, M-Shwari, and KCB M-Pesa are ideal. For quick cash with flexible limits, Tala, Branch, and Zenka remain top picks — but come with higher costs.

The best choice depends on your needs:

Low risk, low return: Hustler Fund, M-Shwari
Medium risk, medium return: Branch, Timiza
High risk, fast access: Tala, Zenka, Okash

Always remember: loans are a tool, not free money. Borrow smart, borrow responsibly.