Equity Bank, the largest lender in Kenya by customer numbers, has announced a substantial reduction in interest rates, becoming the third major bank to do so this week.
The bank said it will cut its rates by 3.00 per cent on all its Kenya Shilling-denominated credit facilities, marking the largest reduction among its peers.
The bank’s new lending rates will feature a revised Equity Bank Reference Rate of 14.39 per cent along with a margin based on individual customer risk profiles.
The new rates are effective February 13, 2025, for new loans and March 1 for existing loans.
The decision mirrors recent significant rate reductions by KCB Group, the largest bank by assets, which recently lowered its base lending rate from 15.6 per cent to 14.6 per cent effective February 10, and tier one lender Co-operative Bank, which reduced its rate from 16.5 per cent to 14.5 per cent.
With this latest adjustment, Equity Bank reckons it is now positioned to offer the most affordable loans in the market, reflecting a growing trend among Kenyan banks to ease borrowing costs amid ongoing economic pressures.
Absa Bank also Wednesday reduced its risk-based pricing benchmark from 17.5 per cent to 16.5 per cent, effective March 12, 2025.
