Equity

The difference between what an asset is worth and what you owe on it. Positive equity means the asset is worth more than the remaining debt. Example: A Kenyan entrepreneur has paid off KES 600,000 of a KES 1,000,000 vehicle loan. The car is currently valued at KES 700,000, so she has KES 300,000 in positive equity — she could sell the car and still have money left after clearing the loan.