Which Is Better Tala or Branch for First Time Borrowers?

Quick answer: For a first-time borrower in Kenya, Tala and Branch are both licensed and quick, but they price differently. Tala charges daily interest of about 0.3% to 0.6%, lends up to KES 50,000 over terms up to 120 days, and adds 20% excise duty on the interest. Branch charges monthly interest of about 2% to 18%, lends roughly KES 500 to KES 300,000 over 62 days to 12 months, and prices each borrower individually. First limits are small on both, so the cheaper option depends on your offer and how long you borrow.

How each one prices a loan

Tala uses daily interest, so the cost depends on how many days you keep the loan. At roughly 0.3% to 0.6% a day, a short loan repaid quickly is cheap, while holding it toward the 120-day maximum adds up. There is no separate processing fee, but 20% excise duty applies to the interest. Branch uses monthly interest of about 2% to 18%, set by your risk profile, over terms from 62 days to a year. Branch pricing is personalised, and its public disclosures on a processing fee are inconsistent, so check the fee shown in your own in-app offer rather than assuming there is none.

	Tala	Branch
Interest basis	Daily, about 0.3% to 0.6%	Monthly, about 2% to 18%
Loan range	Up to KES 50,000	About KES 500 to KES 300,000
Term	Up to 120 days	62 days to 12 months
Other charges	20% excise on interest; no processing fee	Any processing or transaction fee shown in your offer

Which suits a first-time borrower

First limits are modest on both apps and grow as you repay on time. If you need a small amount for a short period, Tala's daily pricing is easy to predict and cheap when cleared fast. If you want a larger amount or a longer term, Branch's range goes higher, but read your personalised offer closely because the rate and any fee vary by borrower. Whichever you pick, the real cost is the total you repay for your exact amount and term, which our total cost calculator works out.

Borrow safely either way

Both Tala and Branch report to the credit bureaus, so repaying on time builds your record and a missed payment can be listed, as our guide on how CRB listing works explains. Confirm either app in the CBK Digital Credit Provider directory before borrowing, and never pay an upfront fee to get a loan.

Frequently asked questions

Is Tala or Branch cheaper for a first loan?

It depends on the amount and how long you borrow. Tala's daily 0.3% to 0.6% is cheap for small, short loans; Branch's monthly 2% to 18% can suit larger or longer ones. Compare the total repayment for your exact loan.

How much can a first-time borrower get?

Limits start small on both and grow with on-time repayment. Tala lends up to KES 50,000 overall and Branch up to about KES 300,000, but initial offers are far lower.

Do Tala and Branch charge extra fees?

Tala adds 20% excise duty on its interest and has no separate processing fee. Branch may show a processing or transaction fee in your individual offer, so check it before accepting.