Equity Bank Lowers Lending Rates Following CBK’s move

• Equity Bank Lowers Lending Rates Following CBK’s CBR Cut to 8.75pc;

Equity Bank has lowered interest rates on all Kenya Shilling (KSh) variable-rate loans following the reduction of the Central Bank Base Rate from 9.00% to 8.75% by the Central Bank of Kenya.

This move reinforces Equity’s commitment to reducing the cost of credit and supporting customers with more affordable loans

Following this move, Equity customers will benefit in many ways including:

1. New customers who took loans from 11th February 2026 onwards will enjoy the new base rate of 8.75% +Premium (K) immediately.
2. Customers who took loans between 1st December 2025 and 10th February 2026 will have the new base rate of 8.75% + Premium (K) applied from 12th March 2026.
3. Customers who took loans before 1st December 2025 will continue under their existing contract terms until 28th February 2026, after which their loans will transition to the new Central Base Rate + Premium (K) structure, as previously communicated.

While the monthly instalment amount will remain unchanged, the loan repayment period will adjust accordingly.

Equity remains committed to aligning its interest rates with directives issued by the Central Bank of Kenya (CBK) from time to time.

According tpo the  Central Base Rate + Premium (K) structure,a consultative paper on the review of the risk-based credit pricing model was released to the public for comments on April 23, 2025.

At the end of the consultative period, the Central Bank of Kenya (CBK) received 45 responses from the Kenya Bankers Association (KBA), 13 commercial banks, the International Monetary Fund (IMF), the European Bank for Reconstruction and Development (EBRD),Kenya Association of Manufacturers (KAM),Automotive Parts Manufacturers Association of Kenya, non-bank financial institutions, individuals, consultancy firms, academia, and corporate
firms.