Can You Use a Logbook Loan with a Foreign Logbook or Incomplete Registration in Kenya?

When money is tight and your car is sitting idle in the driveway, a logbook loan can be a quick and effective way to unlock cash. But what if your car is still on a foreign logbook? Or what if the registration is incomplete—stuck in the importation process, customs, or NTSA?

Can you still qualify for a logbook loan in Kenya? Let’s break it down.

🚗 First, What Exactly Is a Logbook Loan?

A logbook loan is a type of secured loan where your car is used as collateral. You continue to drive the vehicle, but the logbook is temporarily registered in the lender’s name until the loan is fully repaid.

That logbook must:

• Be valid and verifiable on NTSA TIMS
• Show you as the registered owner
• Be free of encumbrances (not already used for another loan)

So, Can You Use a Foreign Logbook? 🤔

❌ No—you cannot use a foreign logbook to get a logbook loan in Kenya.

Here’s why:

• Logbook loans in Kenya require a valid NTSA-issued logbook.
• A foreign logbook (e.g., from Japan, UK, South Africa) isn’t recognized by Kenyan lenders or NTSA.
• You must complete the full registration process, including number plate issuance, CRSP valuation, and NTSA verification.

Even if you’ve already cleared the car with KRA and have the foreign ownership papers, you must convert that into a Kenyan logbook before you qualify.

🛑 What About Incomplete Registration?

If the vehicle is:

• Stuck at the port
• Awaiting customs clearance
• Waiting for CRSP or duty payment
• Pending number plate assignment or NTSA inspection

…then you cannot get a logbook loan—yet.

Why?
Because:

• There is no NTSA logbook in your name
• Lenders cannot legally list a lien on a car that doesn’t exist in the NTSA system
• The risk of fraud, duplication, or disputes is too high

✅ What Are Your Options?

🅰️ 1. Finish Registration, Then Apply

The best and safest path: complete the registration process. It may take time and money, but:

• You will own the car legally
• You can access better loan terms
• You avoid risks of being flagged by NTSA or KRA

💡Tip: Once the logbook is in your name, you can access up to 70–80% of your car’s value in 24–48 hours.

🅱️ 2. Use Another Registered Vehicle as Collateral

If you or a family member owns another car that:

• Is fully registered in Kenya
• Has a clean NTSA logbook
• Is not already encumbered

…then you can use that vehicle instead to unlock funds—even if your imported car isn’t ready yet.

🅲️ 3. Short-Term Alternatives

If you urgently need funds before registration is complete, consider:

• Duty Loans: Some lenders offer loans specifically for import duties (you repay after the car clears)
• Title-based asset loans: If you own land or have shares or savings
• Pre-registration vehicle financing: If you bought the car through a dealer who has a partnership with a lender

Ask your dealer or clearing agent if they offer financing partnerships.

⚠️ Risks of Trying to Circumvent the Process

Some unlicensed lenders may claim to offer loans against foreign logbooks or pre-registration documents.

Be careful. These deals often:

• Come with ridiculous interest rates (15–30% per month)
• Require high upfront fees
• Are unenforceable legally, putting you at risk

Always check that your lender is licensed by CBK or SASRA and can verify the logbook on NTSA.

📋 Summary Table

✅ Final Word

A foreign logbook is a great sign you have secured a valuable asset—but it’s not yet usable as collateral in Kenya.an excellent

To get a legitimate logbook loan:

1. Register the car under your name with the NTSA
2. Ensure it’s not encumbered
3. Apply through a trusted lender

🔓 Need help with financing after registration?
Apply for a logbook loan today and unlock up to KES 1 million in less than 48 hours

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 options.