Equity bank lpwers interest rates by 3 per cent. Photo credit: Wikimedia Commons.
Equity Bank has lowered the interest rates on its loans by 3 per cent, which is the biggest cut they’ve ever made. The cut is expected to ease access to loans.
Beginning February 13, 2025, new loans will have these lower rates. For people who already have loans, the new rates will apply from March 1, 2025. This change is expected to make it easier for people to borrow money to start businesses or support their families.
Other banks have also lowered their loan rates including KCB Bank which recently reduced its base lending rate from 15.6 per cent to 14.6 per cent, and Co-operative Bank which lowered its rate from 16.5 per cent to 14.5 per cent.
These changes came as a result of the Central Bank of Kenya (CBK) decision to lower its interest rate to encourage more borrowing and boost economic activities.
Moses Nyabanda, the managing director of Equity Bank Kenya, said that the bank wants to help Kenyans by making loans more affordable. He stated that by reducing the interest rates, more people will be able to invest in their businesses and support their families.
The reduction in interest rates is likely to ease access to credit by Kenyans especially Small and Medium Enterprises (SMEs) that are seeking for capital to boost their businesses.
