By Hyline Ocharo
Equity Bank Kenya has reduced interest rates on all Kenya Shilling variable-rate loans following the decision by the Central Bank of Kenya to lower the Central Bank Rate (CBR) from 9.00 percent to 8.75 percent.
The lender said the move is intended to ease the cost of borrowing and support customers through more affordable credit in line with the regulator’s monetary policy direction.
Under the revised pricing structure, new borrowers who have taken loans from February 11, 2026, will immediately benefit from the new base rate of 8.75 percent plus the applicable Premium (K).
Customers who accessed loans between December 1, 2025 and February 10, 2026 will have the new base rate applied effective March 12, 2026.
Meanwhile, borrowers who took loans before December 1, 2025 will remain under their existing contractual terms until February 28, 2026, after which their facilities will transition to the new CBR plus Premium (K) framework, as earlier communicated.
Equity noted that while monthly installments will remain unchanged, the repayment period for affected loans will be adjusted accordingly.
The bank reaffirmed its commitment to aligning lending rates with directives issued by the Central Bank of Kenya and to supporting customers through a more responsive and affordable credit environment.