Equity Bank has announced a reduction in interest rates on all Kenya Shilling-denominated credit facilities, effective November 18, 2024.
The reduction follows the recent decision by the Central Bank of Kenya (CBK) to cut the Central Bank Rate (CBR) from 12.75% to 12.0%.
This marks the second time under six months that the bank has reduced its interest rates, with a similar reduction implemented in September 2024.
Equity Bank says the reduced rates are expected to make credit more affordable and accessible for a broader spectrum of customers, fostering financial inclusion and supporting economic growth across the country.
The revised interest rates will apply to new and existing loans, with the Equity Bank Reference Rate (EBRR) dropping from 17.83% to 17.39%.
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Further, the bank says it has kept the margin on loans capped at a maximum of 8.5% per annum aimed at easing the cost of borrowing for consumers and businesses, making it easier for them to access funds at lower rates.
Equity Bank Chief Executive Officer (CEO) James Mwangi emphasized that the decision to lower interest rates directly responded to the CBK’s monetary policy, designed to help stabilize the economy amidst improving inflation rates and other favorable economic indicators.
“The reduction in our EBRR reflects our commitment to supporting Kenya’s economic growth by making credit more affordable for both businesses and households,” he said.
“With this move, all of our customers with Kenya Shilling-denominated loans will benefit from lower borrowing costs, enabling them to better manage their financial aspirations.”
