Absa Digi Loan Offers Instant Financing for Back-to-School Fees

Editorial Desk January 4, 2026

0 2 minutes read

As the January “Njaanuary” back-to-school rush peaks, Absa Bank Kenya has stepped in to cushion parents from the perennial financial squeeze. The lender has launched a targeted campaign centred on its Absa Digi Loan, a digital credit solution designed to help guardians pay school fees instantly and spread the repayment over several months.

With many households in Kenya feeling the pinch of a high cost of living, the bank is positioning the Digi Loan as a bridge that ensures no student stays home due to a lack of fees. The campaign emphasises speed and accessibility, enabling existing customers to access funds without the traditional hurdles of physical paperwork or lengthy bank queues.

One of the most notable features of this campaign is the removal of the minimum net income requirement. Unlike traditional personal loans that demand a specific salary threshold, the Digi Loan focuses on consistent account turnover. This shift opens the door for entrepreneurs and self-employed individuals who maintain active accounts with Absa to benefit from the facility.

Additionally, a good sale for the Absa Digi Loan offering lies in its simplicity. Historically, getting a school fee loan meant providing pay slips, bank statements, and waiting days for approval. Absa has scrapped the old playbook. No Paperwork is required as the loan is available to existing customers based on their account turnover. If you’ve been running your business or personal finances through your Absa account, your “credit story” is already written with the bank, no documents required.

By removing the “minimum net income” barrier, Absa is also reaching the “hustler” economy, entrepreneurs and freelancers who have consistent money moving through their accounts but don’t have a traditional monthly salary.

Key Features of the Absa Digi Loan

Feature	Details
Maximum Loan Amount	Up to KES 1,000,000
Loan Tenor	Flexible terms from 1 to 12 months
Documentation	No Documentation (Digital application for existing customers)
Interest Rate	Variable; 5% per month for loans exceeding one month
Negotiation Fees	9.5% for 1-month loans; 10% for 3–12 month loans

Note: All negotiation fees are subject to a 20% Excise Duty as per statutory requirements.

While the initial fees (Negotiation + Excise) are a one-time cost, the 5% monthly interest allows parents to spread the cost of a KES 100,000 fee over several months, making it a manageable KES 10,000–15,000 monthly commitment rather than a single, crushing blow to the family budget.

Another standout feature of the Digi Loan is the inclusion of Credit Life Insurance. In the unpredictable world we live in, this is a massive safety net. If the borrower suffers a permanent disability or passes away, the insurance clears the outstanding balance. This ensures that the child’s education continues uninterrupted and the family isn’t left with a debt legacy.