7 Ways to Repay Your Logbook Loan in Kenya Faster

A logbook loan can be a lifesaver when you need quick cash without selling your car. But like any loan, the faster you repay it, the less interest you’ll pay, and the sooner you’ll regain full control over your logbook. Whether you’re a business owner, a salaried employee, or a side-hustler, these practical tips will help you clear your logbook loan ahead of schedule.

1. Make Bi-Weekly or Weekly Payments Instead of Monthly

Most people pay their logbook loan monthly, but switching to bi-weekly or even weekly payments reduces your interest over time. It’s a psychological and financial trick that lets you pay more frequently with smaller amounts. This also reduces the overall interest accrued on a reducing balance.

Example: Instead of paying KES 12,000 once a month, pay KES 6,000 every two weeks. When you pay biweekly instead of monthly, you are making 26 half-payments (KES 6,000) instead of 12 full payments (KES 12,000). This means you are paying an extra KES 12,000 per year toward your loan.

The advantage is that this extra money goes directly toward reducing your principal amount (the original loan amount). By reducing the principal faster. You will pay less interest over the life of the loan and you will pay off the loan sooner

2. Channel Your Side Hustle Income Toward the Loan

Use proceeds from your side hustle—mpesa agency, online jobs, reselling products, farming, or even Bolt/Uber driving—to make extra payments. Do not wait until the end of the month. Every time you have a good week or receive extra cash, send some of it to the loan.

Tip: Create a separate mobile wallet for your loan prepayments to avoid using that money for other expenses.

3. Round Up Your Payments

If your loan repayment is KES 13,450 a month, round it up to KES 15,000 or even KES 14,000. Those few hundred shillings may seem small, but they add up fast and go straight to reducing your principal.

Bonus: It helps cushion you in case you hit a rough financial patch later.

4. Make Lump Sum Payments When You Receive Windfalls

Got a chama dividend? Bonus at work? Sold a goat or piece of land? Use that windfall to knock a big chunk off your loan balance. Most logbook loan providers in Kenya do not charge penalties for early payments, so take advantage.

Warning: Do not fall into the temptation of buying non-essential items when you have a loan hanging over your head.

5. Negotiate for a Shorter Loan Term from the Start

Yes, shorter loan terms mean slightly higher monthly payments, but you save a lot on interest. Do not stretch your repayment over 18 months when you can finish in 10. You will pay less and free up your income sooner.

Rule of thumb: Never borrow more than what you can repay within 12 months, unless the asset is generating income.

6. Use Your Car to Generate Extra Income

Your car can help you pay off its own loan:

• Register with Bolt or Uber
• Rent it out for weekend events or school runs
• Offer delivery or courier services
• Partner with someone to run it part-time

Important: Make sure the income it generates exceeds fuel, maintenance, and the repayment amount.

7. Cut Down on Non-Essential Spending

Track your expenses for one month. You’ll be surprised at how much goes to impulse buys, takeout, or weekend outings. Channel that money into your loan.

Try this: Implement a 24-hour rule on non-essential purchases. If you still want it tomorrow, then consider it.

Final Thought

Clearing your logbook loan early does not require magic—just small, consistent actions that chip away at the balance. The sooner you finish, the more financial freedom you regain. Plus, your car becomes a free asset again—ready to borrow against if you ever need it in the future.

Looking to clear your current logbook loan faster—or need a better one? At Kifedha, we offer transparent, flexible logbook loans designed to work for you, not against you. Whether you're starting fresh or switching over, we’re here to help you take control of your finances—your way.

Contact us through our contact form, call us on +254791573231 or visit one of our branches  across Nairobi, Kiambu, Machakos, and Kajiado counties to explore your financial opportunities