Equity Bank CEO James Mwangi. Photo | Courtesy.
Equity Bank has announced a reduction in interest rates on all Kenya Shilling-denominated loans, effective immediately. The move comes in response to the Central Bank of Kenya’s recent decision to reduce the Central Bank Rate (CBR) from 12.75 per cent to 12.0 per cent.
This is the second time in less than six months that Equity Bank has lowered its rates, following a similar cut in September 2024. The bank believes the reduced rates will make credit more affordable and accessible to a wider range of customers, promoting financial inclusion and contributing to the country’s economic growth.
The new interest rates will apply to both new and existing loans, with the Equity Bank Reference Rate (EBRR) decreasing from 17.83 per cent to 17.39 per cent. The bank has also kept its loan margin capped at a maximum of 8.5 per cent per annum, making it easier for individuals and businesses to access funds at more favorable rates.
Also read: How WhatsApp Can Turn Your Hobby Into a Business
Equity Bank CEO James Mwangi emphasized that the decision to lower interest rates was directly aligned with the Central Bank’s monetary policy, which aims to stabilize the economy amid improving inflation and other positive economic indicators.
“The reduction in our EBRR underscores our commitment to supporting Kenya’s economic growth by making credit more accessible and affordable for businesses and households alike,” said Mwangi. “This change will help our customers manage their financial goals more effectively, with lower borrowing costs across the board.”
The bank’s move is expected to have a wide-ranging positive impact on both businesses and households, helping to boost economic activity through reduced financial burdens.
