Latest Average Loan Interest Rates by Top Banks in Kenya
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Kenya’s banking sector in 2025 has been shaped by a gradual easing of monetary policy. The Central Bank of Kenya (CBK) lowered the Central Bank Rate (CBR) to 9.75% by July 2025, following multiple cuts aimed at stimulating private sector credit.
Inflation remained contained at 4.1%, while liquidity conditions improved, enabling banks to adjust their pricing.
As a result, the overall weighted average loan interest rates in Kenya dropped to 15.78%, compared to 16.81% in July 2024. However, elevated non-performing loans (NPLs) at 17.6% continued to affect lending, as banks priced loans using the Risk-Based Credit Pricing Model (RBCPM).
The model adds borrower risk premiums to base rates, creating variations across lenders.
From September 1, 2025, banks will fully implement the revised RBCPM, which ties lending to the Kenya Shilling Overnight Interbank Average (KESONIA). The framework is expected to enhance transparency and align bank lending more closely with policy signals.
The latest average loan interest rates by top banks in Kenya include:
- Stanbic Bank Kenya — 12%
The Stanbic Bank lending rate averaged 12%, the lowest among major lenders. Earlier in the year, Stanbic cut its rates by 1.75%, driving a 3.3% rise in private sector credit.
The bank benefits from strong liquidity and a focus on low-risk segments such as export finance. Loan processing is largely digital, enabling faster approvals, though borrowers incur fees of up to 2%.
This week, Stanbic became the first bank to announce compliance with CBK’s revised credit pricing guidelines. All new variable-rate loans after September 1, 2025, will follow the updated RBCPM, with existing loans transitioning by February 2026.
- Standard Chartered Bank Kenya — 12.8%
The Standard Chartered Bank lending rate averaged 12.8%. Mortgages for top-tier clients started at 11.5%, while personal and SME loans were priced higher. The bank leverages global funding lines to price below sector averages and has reduced lending costs by 1.5% since February 2025.
StanChart also promotes sustainable finance, offering green loans at preferential terms. However, only borrowers with strong credit histories qualify. Effective borrowing costs may rise to around 14% once insurance premiums and hidden charges are included.
- Absa Bank Kenya — 14%
The Absa Bank lending rate averaged 14%. Absa trimmed its average by 1% earlier in 2025 in response to CBK narrowing its rate corridor to ±75 basis points.
With over 100 branches, Absa provides extensive reach in rural areas. Borrowers benefit from flexible repayment terms of up to 72 months, though arrangement fees of 1–4% apply.
- Equity Bank — 15%
The Equity Bank lending rate stood at 15% in July, down from 18% before the monetary policy shift. The Equity Bank Reference Rate (EBRR) was revised to 14.39% in February 2025, affecting products such as Eazzy Loans, which range from 14–16%.
Equity continues to serve SMEs, women-led enterprises, and agribusiness, with agricultural loans priced at 14.5%. Its mobile platform processes over 70% of loans, though strict appraisals are enforced to curb default risks.
- Diamond Trust Bank (DTB) Kenya — 15.5%
The DTB lending rate averaged 15.5% after phased reductions of 0.5% in January and 0.37% in February. Conventional loans for secured borrowers started at 14.5%, while riskier clients paid higher premiums.
DTB remains strong in trade finance, particularly across East African corridors, and operates an Islamic banking subsidiary.
- KCB Bank — 15.8%
The KCB Bank lending rate averaged 15.8%. Earlier in 2025, KCB reduced its base rate from 15.6% to 14.6% in February, and again to 13.85% in April. This rate applied across overdrafts and working capital loans, while personal loans ranged between 15–17%.
KCB has the largest branch footprint, with over 200 outlets, and its integration with M-Pesa continues to make digital loans widely accessible.
- Co-operative Bank — 16%
The Co-operative Bank lending rate averaged 16%, with mortgages at 15.5% and personal loans ranging between 15–17%. The bank cut its base rate from 16.5% to 14.5% earlier in the year but has kept its average steady due to rural NPL pressures.
Co-op, backed by its over KSh 500 billion deposit base, offers loyalty discounts to members and supports lending to SACCOs and agribusiness.
- NCBA Bank — 16%
The NCBA Bank lending rate stood at 16%. The bank’s digital transformation strategy in 2025 has introduced app-based lending with reduced fees. Legacy NPLs remain a drag, preventing deeper cuts, but NCBA continues to grow its wealth management and digital loan offerings.
- Family Bank — 16%
The Family Bank lending rate averaged 16%. The bank specializes in microloans and education financing. As a mid-tier lender, Family Bank caters to underserved communities, leveraging strong repayment ties. Its network of about 40 branches is supplemented by digital wallets for loan access.
- I&M Bank — 16%
The I&M Bank lending rate averaged 16%, following a 2% rate cut in March 2025. Mortgages were priced at 9.5%, while business and corporate loans were close to the average. I&M primarily serves affluent clients and exporters, offering forex hedging and tailored solutions.
- Sidian Bank — 17.5%
The Sidian Bank lending rate averaged 17.5%, reflecting its focus on SMEs and informal sector borrowers. While digital tools improve accessibility, risk assessments extend loan approval times.
- HFC Limited — 19%
The HFC Limited lending rate was the highest among major lenders at 19%. Specializing in mortgages and property loans with terms up to 25 years, HFC faces higher risks from long-tenor lending.
Jefferson Wachira is a writer at Africa Digest News, specializing in banking and finance trends, and their impact on African economies.
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