Equity Bank Reduces Interest Rates On Loans

Equity Bank has announced a reduction in interest rates on all Kenya Shilling-denominated credit facilities, effective today.

This move comes after the Central Bank of Kenya (CBK) recently lowered the Central Bank Rate (CBR) from 12.75% to 12.0%.

This is the second time in less than six months that the bank has reduced its interest rates.

The first reduction occurred in September 2024. According to the bank, the decision aims to make credit more affordable and accessible, supporting financial inclusion and fostering economic growth across the country.

The revised interest rates will apply to both new and existing loans. The bank’s Equity Bank Reference Rate (EBRR) has been reduced from 17.83% to 17.39%. Additionally, the margin on loans has been capped at a maximum of 8.5% per annum, further easing the cost of borrowing for consumers and businesses.

Equity Bank’s CEO, James Mwangi, explained that the interest rate reduction is in response to the CBK’s monetary policy, which seeks to stabilize the economy in light of improving inflation rates and other positive economic indicators.

“The reduction in our EBRR reflects our commitment to supporting Kenya’s economic growth by making credit more affordable for both businesses and households,” Mwangi said.

He added that this change would benefit all customers with Kenya Shilling-denominated loans, allowing them to better manage their financial goals.