diff --git a/src/borg/crypto/key.py b/src/borg/crypto/key.py
index 9fe2ad9ac..879f85c88 100644
--- a/src/borg/crypto/key.py
+++ b/src/borg/crypto/key.py
@@ -617,11 +617,11 @@ class FlexiKey:
             raise KeyfileNotFoundError(self.repository._location.canonical_path(), get_keys_dir())
         elif self.STORAGE == KeyBlobStorage.REPO:
             loc = self.repository._location.canonical_path()
-            try:
-                self.repository.load_key()
-                return loc
-            except configparser.NoOptionError:
+            key = self.repository.load_key()
+            if not key:
+                # if we got an empty key, it means there is no key.
                 raise RepoKeyNotFoundError(loc) from None
+            return loc
         else:
             raise TypeError('Unsupported borg key storage type')
 
@@ -681,6 +681,10 @@ class FlexiKey:
             # what we get in target is just a repo location, but we already have the repo obj:
             target = self.repository
             key_data = target.load_key()
+            if not key_data:
+                # if we got an empty key, it means there is no key.
+                loc = target._location.canonical_path()
+                raise RepoKeyNotFoundError(loc) from None
             key_data = key_data.decode('utf-8')  # remote repo: msgpack issue #99, getting bytes
         else:
             raise TypeError('Unsupported borg key storage type')
diff --git a/src/borg/crypto/keymanager.py b/src/borg/crypto/keymanager.py
index 32dd39c04..2d41c3022 100644
--- a/src/borg/crypto/keymanager.py
+++ b/src/borg/crypto/keymanager.py
@@ -7,7 +7,7 @@ from hashlib import sha256
 from ..helpers import Manifest, NoManifestError, Error, yes, bin_to_hex, dash_open
 from ..repository import Repository
 
-from .key import KeyfileKey, KeyfileNotFoundError, KeyBlobStorage, identify_key
+from .key import KeyfileKey, KeyfileNotFoundError, RepoKeyNotFoundError, KeyBlobStorage, identify_key
 
 
 class UnencryptedRepo(Error):
@@ -56,7 +56,12 @@ class KeyManager:
                 self.keyblob = ''.join(fd.readlines()[1:])
 
         elif self.keyblob_storage == KeyBlobStorage.REPO:
-            self.keyblob = self.repository.load_key().decode()
+            key_data = self.repository.load_key().decode()
+            if not key_data:
+                # if we got an empty key, it means there is no key.
+                loc = self.repository._location.canonical_path()
+                raise RepoKeyNotFoundError(loc) from None
+            self.keyblob = key_data
 
     def store_keyblob(self, args):
         if self.keyblob_storage == KeyBlobStorage.KEYFILE:
diff --git a/src/borg/repository.py b/src/borg/repository.py
index dea172f09..cac2e2adb 100644
--- a/src/borg/repository.py
+++ b/src/borg/repository.py
@@ -343,7 +343,7 @@ class Repository:
         self.save_config(self.path, self.config)
 
     def load_key(self):
-        keydata = self.config.get('repository', 'key')
+        keydata = self.config.get('repository', 'key', fallback='').strip()
         # note: if we return an empty string, it means there is no repo key
         return keydata.encode('utf-8')  # remote repo: msgpack issue #99, returning bytes