Equity Bank Kenya has announced a reduction in interest rates on all Kenya Shilling-denominated loans, both new and existing, in response to the Central Bank of Kenya’s (CBK) latest monetary policy adjustments.

The revised rates will take effect from February 13, 2025 for new loans, while existing loan holders will benefit from the cut starting March 1, 2025.

The move follows the CBK’s Monetary Policy Committee (MPC) decision to lower the Central Bank Rate (CBR) by 50 basis points to 10.75 per cent and the Cash Reserve Ratio (CRR) by 100 basis points to 3.25 per cent.

These changes are intended to inject more liquidity into the financial sector, making borrowing more affordable and stimulating economic growth.

Equity Bank’s adjustment sees its Equity Bank Reference Rate (EBRR) revised to 14.39 per cent, plus an additional margin based on customer risk profiles.

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This translates to a 300-basis-point (3 per cent) reduction across various credit products, aligning with the bank’s aim to enhance financial inclusion and spur business activity.

Commenting on the decision, Equity Bank Kenya Managing Director Moses Nyabanda said the bank recognises the financial struggles many Kenyans face and is committed to offering relief through lower interest rates.

“We understand the financial pressures facing Kenyans today, and we're committed to doing our part to ease that burden. This rate cut is about more than just lower interest rates; it's about opening doors for Kenyans to invest in their businesses, support their families, and their livelihoods,” Nyabanda stated.

This marks the third time in six months that Equity Bank has lowered its lending rates, having previously implemented reductions in September and November 2024.

The move is expected to reduce borrowing costs for businesses, leading to lower operational expenses, expansion opportunities, and potential job creation.

Households will also see relief through lower loan repayments, increasing disposable income and encouraging consumer spending.

The MPC, which convened on 5th February 2025, noted that reducing the CRR would allow banks to access additional funds, ultimately making lending cheaper and stimulating private-sector credit growth.

Equity Bank’s latest rate revision aligns with these economic policy objectives, ensuring that customers benefit directly from the CBK’s intervention.

As Kenya navigates an evolving economic landscape, Equity Bank remains focused on supporting businesses, households, and overall financial growth.

By passing on the benefits of reduced interest rates, the bank seeks to create an enabling environment where enterprises can flourish, employment rises, and financial inclusion broadens.