Quick answer
On a KSh 100,000 salary, you can afford a loan instalment of about KSh 37,112 a month, roughly KSh 1,333,477 at 15.0% over 48 months.
The two-thirds rule
Section 19 of the Employment Act limits total deductions from your wages to two-thirds. Lenders that use check-off, including banks and SACCOs, therefore size your loan so that at least one-third of your gross pay is left after PAYE, NSSF, SHIF, the Housing Levy and all loan repayments.
That is why two people with the same salary can qualify for different amounts: someone with an existing car loan has less room left for a new instalment.
How lenders turn an instalment into a loan amount
Once the maximum monthly instalment is known, the loan amount depends only on the interest rate and the repayment period. A longer period means a bigger loan but far more interest paid. Use the loan calculator to see the total cost of the figure shown here.
Rates used in this calculator
| Severance (redundancy) | 15 days’ pay per completed year |
|---|---|
| Service pay | 15 days’ pay per completed year (non-NSSF members) |
| Annual leave | 21 working days (1.75 days a month) |
| Overtime | 1.5× on weekdays, 2× on rest days and public holidays |
| Maximum deductions from pay | Two-thirds of wages |
| NITA levy (employer) | KSh 50 per employee a month |
| First KSh 24,000 of taxable pay | 10% |
|---|---|
| KSh 24,001 – 32,333 | 25% |
| KSh 32,334 – 500,000 | 30% |
| KSh 500,001 – 800,000 | 32.5% |
| Above KSh 800,000 | 35% |
| Personal relief | KSh 2,400 a month |
| Insurance relief | 15%, up to KSh 5,000 a month |
| Pension contributions deductible up to | KSh 30,000 a month |
| Mortgage interest deductible up to | KSh 30,000 a month |