Relief for Borrowers as NCBA and KCB Lower Loan Rates

Borrowers are set to benefit after NCBA Bank Kenya Plc and KCB Bank Kenya Limited announced reductions in their base lending rates following the Central Bank’s latest policy move.

The latest adjustments are expected to make borrowing cheaper for individuals and businesses, especially for those whose loan interest rates change with the Central Bank Rate (CBR).

The two lenders adjusted their rates after the Central Bank of Kenya lowered the Central Bank Rate (CBR) to 8.75%.

NCBA Bank to Lower its Lending Rates

In a notice dated Thursday, February 12 2026, NCBA said all new Kenya shilling variable-rate facilities booked from February 12, 2026, will attract a base rate of 8.75% per annum.

“Following the recent revision of the Central Bank Rate (CBR) by the Monetary Policy Committee to 8.75%, and pursuant to the Risk-Based Credit Pricing Model (RBCPMI, NCBA wishes to inform its customers and the public of the following changes to Kenya Shilling variable-rate facilities,” read part of the notice.

Also Read: Equity Bank Announces Cheaper Loans for Customers After CBK Lowers CBR Rate

According to NCBA, Loans granted from December 1, 2025, under the Risk-Based Credit Pricing Model (RBCPM) will apply the revised base rate effective March 12, 2026.

Facilities issued before December 1, 2025, will transition to the RBCPM framework on February 28, 2026.

The bank clarified that the final lending rate for each customer will comprise the base rate (CBR) plus a customer-specific margin determined under the approved pricing model.

Additionally, the Bank stated that all applicable fees will be disclosed in line with regulatory requirements.

KCB’s Adjustments

KCB also confirmed a reduction in its base lending rate to 8.75% for new local currency-denominated variable-rate loans. The final rate will include a customer-specific margin in accordance with the RBCPM framework.

For existing variable-rate loans currently priced on the CBR, the CBR component will be adjusted to 8.75%, effective 30 days from February 11, 2026.

“Following the Central Bank of Kenya’s (CBK) latest adjustment of the Central Bank Rate (CBR) to 8.75%, and in accordance with the Risk-Based Credit Pricing Model (RBCPM), which came into effect on December 1, 2025, KCB Bank Kenya Limited wishes to notify our customers and the public that it has revised its base lending rates:

Also Read: Relief for Borrowers as CBK Cuts Lending Rates by 25 Basis Points

Loans issued before December 1, 2025, will continue under their current terms but will migrate to the RBCPM framework on February 28, 2026. After the transition, the CBR component will also be revised to 8.75%, effective 30 days from February 11, 2026.

Both banks said they will fully disclose all fees, charges, and the total cost of credit to customers in compliance with CBK regulations.

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