In August 2024, the Central Bank of Kenya reduced its main interest rate to 12.75% from 13% in an effort to stabilize inflation and the exchange rate. In response, various banks in Kenya adjusted their loan rates—some increased them, while others lowered their rates. The changes in these loan rates have a direct impact on borrowing, spending, saving, and investing within the economy. Lower loan rates typically encourage more borrowing, particularly for larger amounts, providing individuals and businesses with capital to start or improve their ventures.
Here is a breakdown of the loan rates charged by banks in Kenya:
Highest Interest Rates
- Middle East Bank: 20.96%
- Credit Bank: 20.32%
- HFC Bank: 20.12%
- SBM Bank: 19.91%
- ABSA Bank: 19.82%
- Sidian Bank: 19.74%
- Commercial International Bank (CIB): 19.20%
- NCBA Bank: 19.12%
- Victoria Commercial Bank: 18.75%
- Bank of Africa: 18.51%
- I&M Bank: 18.48%
Moderate Interest Rates
- Prime Bank: 16.85%
- Guaranty Trust Bank: 16.85%
- National Bank: 16.82%
- Development Bank: 16.46%
- KCB Bank: 16.40%
- DIB Bank: 16.27%
- Family Bank: 16.13%
- Equity Bank: 16.02%
- Gulf African Bank: 15.68%
- UBA Kenya: 15.55%
- Habib Bank: 15.38%
Lowest Interest Rates
- Paramount Bank: 15.35%
- Co-op Bank: 15.18%
- Bank of India: 14.94%
- Ecobank: 14.72%
- Guardian Bank: 14.67%
- Kingdom Bank: 14.20%
- Consolidated Bank: 13.39%
- Diamond Trust Bank: 12.39%
- Access Bank: 11.37%
- Premier Bank: 9%
Conclusion
The loan rates charged by Kenyan banks vary significantly, with some institutions offering higher rates and others more competitive rates. For individuals and businesses looking to borrow, understanding the different rates charged by various banks can help them make an informed decision on where to seek financing. With the Central Bank of Kenya’s recent interest rate cut, borrowers may find some relief, but it’s essential to stay aware of the fluctuations in loan rates to optimize borrowing costs.
