NAIROBI, Kenya,Feb 12 – Equity Bank has announced a 300 basis point (3 percent) reduction in interest rates for all new and existing Kenya Shilling-denominated credit facilities.
This latest reduction, effective from February 13, 2025, for new loans and March 1, 2025, for existing loans, is in line with the Central Bank of Kenya’s decision to cut the Central Bank Rate (CBR) by 50 basis points to 10.75 percent.
This is the third time in the last six months that Equity Bank has reduced its lending rates following a similar scale down in September and November 2024.
The current adjustment brings the bank’s revised Equity Bank Reference Rate (EBRR) to 14.39 percent, plus a margin based on the individual customer’s risk profile.
Its Managing Director Moses Nyabanda, highlighted the importance of this step in supporting both businesses and households.
“We understand the financial pressures facing Kenyans today, and we’re committed to doing our part to ease that burden,” he said.
“This rate cut is about more than just lower interest rates; it’s about opening doors for Kenyans to invest in their businesses, support their families, and their livelihoods.”
According to Equity, the move is expected to positively impact the Kenyan economy by providing access to more affordable credit.
Equity joins a list of lenders who have moved to comply with CBK’s directive to cut lending rates.
Earlier, Kenya Commercial Bank (KCB) and Co-operative Bank announced the reduction of their base lending rates.
This move is expected to be replicated across the banking sector.
In tandem, CBK lowered the Cash Reserve Ratio (CRR) for banks to 3.25 percent, a change expected to free up to Sh57 billion for lending.
This decision follows a series of rate cuts in late 2024, aimed at boosting economic activity, which had been slowing.
