Equity Bank has cut interest rates on all new and existing Kenya Shilling-denominated credit facilities. This adjustment will take effect from February 13, 2025, for new loans and from March 1, 2025, for existing loans.
Under the revised terms, the reduced interest rates will consist of a revised Equity Bank Reference Rate (EBRR) of 14.39% plus a margin based on the specific customer risk profile. This 300 basis points (3%) reduction applies across a wide range of credit products, underscoring the bank’s dedication to supporting customers across diverse sectors.
This decision follows the recent move by the Central Bank of Kenya’s Monetary Policy Committee (MPC) to lower the Central Bank Rate (CBR) by 50 basis points to 10.75% from 11.25% and reduce the Cash Reserve Ratio (CRR) by 100 basis points to 3.25% from 4.25%. The new rates reflect Equity Bank’s commitment to making credit more affordable and accessible, reinforcing financial inclusion and stimulating economic growth across Kenya.
“We understand the financial pressures facing Kenyans today, and we are committed to doing our part to ease that burden. This rate cut is about more than just lower interest rates; it is about opening doors for Kenyans to invest in their businesses, support their families, and enhance their livelihoods,” said Moses Nyabanda, Managing Director, Equity Bank (Kenya) Limited.
This marks the third time within the last six months that Equity Bank has reduced its lending rates, with previous reductions in September and November 2024. Lower interest rates are expected to have a significant positive impact on the economy by reducing borrowing costs for businesses, thereby lowering operational expenses and fostering job creation. Additionally, for households, lower rates mean reduced loan repayments, increased disposable income, and enhanced consumer spending.
