Hyline Ocharo reports that Equity Bank Kenya has decreased interest rates on all Kenyan Shilling variable-rate loans subsequent to the Central Bank of Kenya’s decision to reduce the Central Bank Rate (CBR) from 9.00 percent to 8.75 percent.
The financial institution stated that this action aims to reduce borrowing costs and provide customers with more accessible credit options, aligning with the monetary policy guidance of the regulatory authority.
According to the updated pricing framework, new borrowers who secured loans from February 11, 2026, will immediately enjoy benefits from the new base rate of 8.75 percent plus the applicable Premium (K).
Individuals who obtained loans between December 1, 2025 and February 10, 2026 will see the new base rate implemented starting March 12, 2026.
In the meantime, borrowers who acquired loans prior to December 1, 2025 will continue under their current contractual terms until February 28, 2026, at which point their accounts will shift to the new CBR plus Premium (K) structure, as previously announced.
Equity Bank indicated that although monthly payments will stay consistent, the repayment duration for impacted loans will be modified as appropriate.
The banking firm reiterated its dedication to synchronizing lending rates with guidelines provided by the Central Bank of Kenya and to assisting customers through a more adaptable and cost-effective credit setting.