Zenka Loan Interest Rate & Processing Fee in Kenya

In this post, we’ll break down the Zenka loan interest rate and fees so you can understand exactly what you’ll pay when you borrow from them. Before hitting that “borrow” button, it’s essential to understand the loan terms, especially loan limits, interest rates, and processing fees.

Zenka is a digital lending platform that offers quick, convenient loans to Kenyans entirely through their mobile phones. With fast approvals and no collateral required, it’s easy to see why borrowers are attracted to digital lenders like Zenka. But these loans come at a cost – sometimes a very high cost.

Definition of interest rate.

What is an interest rate?

An interest rate is the percentage charged on the principal amount borrowed. It’s essentially the cost of borrowing money. Higher interest rates mean the lender charges more for the loan.

Zenka interest rate

Zenka’s Interest Rates

Zenka charges interest on their loans at a rate of 9-39% of the principal amount borrowed. The specific rate you receive will depend on factors like your credit history, income, and the loan size requested. The maximum annual percentage rate (APR) – the cost of the loan including all fees – can be as high as 180% according to Zenka.

This means that for a 1-month KSh 1,000 loan, you may pay back over KSh 1,290 including interest and fees. While convenient, these rates are much higher than traditional bank loans in Kenya.

However, it should be noted that for you to apply for a Zenka loan for two months, you will have to extend the loan borrowed. This Zenka loan extension comes at an extra fee. Which means that the interest rate you pay will be higher.

Zenka Processing and Other Fees

In addition to interest, Zenka charges a one-time processing fee on each loan. This fee ranges from KSh 45 for very small loans up to KSh 5,800 for their maximum loan amount. Zenka’s processing fee is added to the approved loan amount before the funds are disbursed to your mobile wallet. This way, when you borrow from Zenka, you get the exact cash loan amount you asked for.

It should be noted that some other loan apps in Kenya deduct the processing fee from your loan amount. This leads to you receiving less money in your mpesa wallet than you had borrowed.   

Zenka also charges late fees if you miss a repayment date and limits further borrowing until overdue amounts are paid back. There are no early repayment penalties, however.

How Zenka calculates payments

How Zenka Calculates Payments including interest and processing fee

When you borrow from Zenka, your loan agreement will spell out specifics like:

  • Total loan amount
  • Processing fee
  • Number and amount of installment payments
  • Payment due dates
  • Total repayment amount including interest and fees
  • Loan duration and start/end dates

For example, a 30-day KSh 1,000 loan may have terms like:

  • Total loan amount: KSh 1,000
  • Processing fee: KSh 100
  • 1 installment of: KSh 1290 each
  • Payments are due on: Day 31
  • Total repayment: KSh 1,290
  • Loan duration: 31 days

Zenka offers 30-day loans but customers can request extended repayment of 61 days and up to 12 months through their ZenkaFlexi option. Paying back promptly can also help you qualify for larger loan amounts over time.

First Zenka loan interest Rate 0% – No interest

First Zenka Loan Interest Rate

For your first loan with Zenka, the interest rate is 0%. As a new customer who qualifies to borrow a loan, you will only pay back the amount you borrowed. This means that if you qualify for a Zenka loan of 1000 Ksh, you will only repay Ksh 1,000. Take advantage of this offer by downloading the Zenka loan app now and start borrowing your first loan at 0%. When you repay on time, you can qualify for a bigger cash loan in Kenya on future Zenka loans.

Penalty Fee for late Zenka loan repayment

If you miss your payment due date, Zenka will charge a late penalty fee, usually around 1.5% of the overdue installment amount per day. This extra charge is motivation to repay on time if possible, as it adds to your total repayment cost.

If you fail to make any payments due to Zenka within the repayment period, we will apply late payment interest of one percent (1.5%) per day on the outstanding principal, and other Processing Fees or interest at a rate to be communicated to you, on such amounts loaned to you, up to the full amount of the Loan.

Source: Zenka: Zenka Finance Limited terms and conditions
Zenka loan repayment period

Repayment Period

Zenka offers standard 30-day loans that you can extend easily up to 61 days. But customers can request an extended repayment period of up to 12 months. This ZenkaFlexi option spreads your repayment over more flexible installments, asking you if you want to extend your loan monthly at an extra fee. It gives you a longer time to repay your Zenka loan but increases your total borrowing cost over the longer term.

How Long Does It Take to Get a Loan from Zenka?

A key benefit of digital lenders is quick access to financing. You can get your Zenka loan immediately sent to your Mpesa account once you qualify for a loan and press Borrow. Usually, Zenka loans are sent to you quickly and it is rare if the loan takes more than 5 minutes to reflect in your mobile money wallet. This means you can apply and get approved in just minutes on your phone. Once approved, funds are sent to your Mpesa account within seconds. So the entire process often takes less than 10 minutes, making Zenka one of the fastest loan apps in Kenya to get an emergency cash loan.  


How to get a Zenka Loan Extension

If you realize you cannot repay your loan by the due date, Zenka does allow extensions for up to 30 days. You can have a Zenka loan extension of 7 days, 14 days, or 30 days. The good thing is that you can apply for a Zenka extension of your loan for up to 1 year. However, this will be quite expensive to do as much as it is convenient.  You must request the extension before your loan becomes overdue. An extension gives you more time to repay but also increases the interest owed.

Minimum and maximum Loan Amount that are charged Zenka interest rate

Zenka offers loans ranging from a minimum of KSh 500 to a maximum of KSh 100,000, providing a flexible range to cater to diverse financial needs. The interest rate structure is dynamic, with rates varying between 9% and 39%, allowing borrowers to select terms that suit their preferences.

What is APR?

APR stands for Annual Percentage Rate. It measures the true annual cost of a loan including all interest, fees, and other charges. Zenka’s stated maximum APR is 180%. This gives a standardized way to compare the cost of Zenka’s loans to other lending options.

What is risk-based pricing?

Zenka uses risk-based pricing for their loans. This means the interest rate you receive will vary based on factors that predict your likelihood of repaying. Customers deemed higher risk due to limited credit history or income will be charged higher rates. Lower-risk customers will qualify for lower pricing. This helps Zenka offset risk on loans that lack traditional collateral.

Making an informed decision

Before borrowing from Zenka, consider these factors:

Do you genuinely need the loan? Explore alternative options first, such as savings or borrowing from friends or family.

Can you afford the repayments? Ensure you can comfortably manage the monthly installments while meeting your other financial obligations.

Compare costs with other lenders: Research interest rates and fees offered by other loan providers to find the most favorable option.

Remember: Borrowing responsibly is crucial. By understanding Zenka’s loan terms and comparing options, you can make informed decisions that fit your financial situation.

Disclaimer: This blog post is for informational purposes only and does not constitute financial advice. Always conduct your own research and consult with a financial professional before making any borrowing decisions.


Digital loans provide fast access to borrowing but weigh the costs. Read Zenka’s terms closely and limit borrowing to what you can repay quickly.

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