Equity Bank (K) Ltd reduced its base lending rate on all Kenya Shilling-denominated credit facilities. The reduced interest rates will comprise a revised Equity Bank Reference Rate (EBRR) of 14.39% plus a margin (based on specific customer risk profile).

The reduction in lending rates will see new borrowers benefitting immediately while existing borrowers will be charged to reduced rate from 1st of March 2025.

Equity Bank Kenya becomes the lender to slash lending rates after Cooperative Bank of Kenya (14.5%) and KCB Kenya (14.6%) that reduced the lending rates on Monday.

The reduction in lending rates by banks follows the recent decision by the Central Bank of Kenya’s Monetary Policy Committee (MPC) to cut the Central Bank Rate (CBR) by 50 basis points to 10.75% from 11.25% and the Cash Reserve Ratio (CRR) by 100 basis points to 3.25% from 4.25%.

The reduced interest rates will comprise a revised Equity Bank Reference Rate (EBRR) of 14.39% plus a margin (based on specific customer risk profile). This 300 basis points (3%) reduction applies to a wide range of credit products, reflecting the bank’s commitment to supporting customers across diverse sectors.

“We understand the financial pressures facing Kenyans today, and we’re committed to doing our part to ease that burden. 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,” said Moses Nyabanda, Managing Director, Equity Bank (Kenya) Limited.