CBK Releases List of Kenyan Banks with Lowest and Highest Loan Interest Rates
The Central Bank of Kenya (CBK) has released the latest average lending rates for commercial banks in Kenya. These figures reflect the interest rates charged on loans and offer insight into the cost of borrowing across various financial institutions.
As of the latest update, the overall average lending rate across all commercial banks stands at 15.77%, down from 16.41% recorded in February 2025. This decline comes in the wake of recent monetary policy decisions aimed at stimulating economic activity.
Banks with the Highest Loan Interest Rates
According to the CBK report, the following banks currently charge the highest interest rates on loans:
- Middle East Bank (K) Limited – 20.63%
- Access Bank (Kenya) PLC – 20.50%
- Commercial International Bank (CIB) Kenya Limited – 19.64%
- Credit Bank Limited – 19.49%
- HFC Limited – 18.92%
- SBM Bank Kenya Limited – 18.72%
- Sidian Bank Limited – 18.63%
- UBA Kenya Bank Limited – 17.98%
- Bank of Africa Kenya Limited – 17.90%
- I&M Bank Limited – 17.60%
- African Banking Corporation Limited – 17.54%
- M-Oriental Bank Limited – 17.36%
- DIB Bank Kenya Limited – 17.07%
- Prime Bank Limited – 16.94%
- Family Bank Limited – 16.44%
- NCBA Bank Kenya PLC – 16.42%
- Development Bank of Kenya Limited – 16.31%
- KCB Bank Kenya Limited – 16.18%
- Diamond Trust Bank Kenya Limited – 16.12%
- Co-operative Bank of Kenya Limited – 16.08%
- National Bank of Kenya Limited – 16.05%
These banks represent the upper tier in terms of loan pricing, with interest rates significantly above the national average. Borrowers seeking financing from these institutions should consider the cost implications carefully.
Banks with the Lowest Loan Interest Rates
On the other end of the spectrum, several banks are offering relatively low interest rates. The banks with the most affordable lending terms are:
- Citibank N.A. Kenya – 11.14%
- Stanbic Bank Kenya Limited – 12.76%
- Consolidated Bank of Kenya Limited – 13.31%
- Ecobank Kenya Limited – 13.82%
- Guardian Bank Limited – 13.94%
- Standard Chartered Bank Kenya Limited – 14.07%
- Kingdom Bank Limited – 14.42%
- Paramount Bank Limited – 14.69%
- Equity Bank Kenya Limited – 14.88%
- Premier Bank Kenya Limited – 15.03%
- Gulf African Bank Limited – 15.21%
- Habib Bank A.G. Zurich – 15.24%
- Bank of India – 15.34%
- Bank of Baroda (Kenya) Limited – 15.65%
- Guaranty Trust Bank (Kenya) Ltd – 15.71%
- Victoria Commercial Bank PLC – 15.74%
- ABSA Bank Kenya PLC – 15.94%
These banks provide more competitive rates, potentially making them more attractive to borrowers seeking to minimize interest payments.
Banks with the Highest Deposit Rates
In addition to lending rates, the CBK also reported on deposit interest rates offered by commercial banks as of March 2025. These rates are crucial for customers looking to maximize returns on their savings and fixed deposits.
- Credit Bank had the highest deposit rate at 13.32%.
- Kingdom Bank followed with a rate of 11.57%.
- African Banking Corporation offered 13.31%.
- I&M Bank posted a deposit rate of 12.00%.
- Development Bank of Kenya reported 11.92%.
Other notable banks offering competitive deposit rates include:
- CIB Kenya – 11.56%
- Prime Bank – 11.24%
- Bank of Baroda – 11.24%
- Sidian Bank – 11.06%
- Paramount Bank – 11.01%
- DIB Bank Kenya – 10.84%
- Equity Bank – 10.76%
- Bank of India – 10.75%
- Access Bank – 10.51%
- Victoria Commercial Bank – 10.48%
- Gulf African Bank – 9.23%
- Ecobank Kenya – 9.18%
These figures highlight which banks are offering the best value to savers and investors.
Central Bank of Kenya Rate (CBR)
In April 2025, the Central Bank of Kenya revised its monetary policy stance by reducing the Central Bank Rate (CBR) by 0.75%, bringing it down to 10%. The decision was made during a meeting of the Monetary Policy Committee (MPC).
According to CBK Governor Kamau Thugge, the move was intended to stimulate economic growth by encouraging credit uptake and lowering the cost of borrowing.
As a result, the CBK issued a directive urging commercial banks to adjust their lending rates downward in line with the revised policy rate. The intention is to ensure that the benefits of the lower CBR are passed on to consumers and businesses.
The latest data from the Central Bank of Kenya paints a clear picture of the loan and deposit interest rate landscape across the country. While some banks continue to charge relatively high lending rates, others are offering more favorable terms. Similarly, depositors have opportunities to earn competitive returns by choosing banks with high deposit rates.
Both borrowers and savers are advised to review these rates carefully and make informed financial decisions based on their individual needs and goals. The CBK’s recent policy adjustment underscores the regulator’s commitment to supporting economic stability and promoting affordable credit access.
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CBK Releases List of Kenyan Banks with Lowest and Highest Loan Interest Rates
