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

Michael Owino 23 hours ago

Equity Bank has announced a reduction in its loan interest rates, providing relief to borrowers following the Central Bank of Kenya (CBK) ‘s recent policy adjustment. This decision follows the Central Bank of Kenya’s revision of the Central Bank Rate (CBR) from 9.00% to 8.75%, effective on February 10, 2026.

According to a notice from the lender dated Wednesday, February 11, all new Kenya Shilling variable-rate loans will now be priced using the lower CBR of 8.75% plus a premium.

“Dear Esteemed Members. Following the revision of the Central Bank Rate (CBR) by the Central Bank of Kenya from 9.00% to 8.75% on 10 February 2026, we wish to notify you of the following changes,” read part of the notice.

Equity Bank Announces Lower Loan Interest Rates

Existing customers with variable-rate loans already linked to the CBR will also benefit, as their interest rate component will adjust from 9.00% to 8.75% following a 30-day notice period.

The Bank is also finalising a transition for older credit facilities. Loans disbursed before December 1, 2025, which were previously based on the Equity Bank Reference Rate (EBRR), are scheduled to migrate to the CBR-plus-premium pricing model on February 28, 2026.

Also Read: Equity Bank Lowers Loan Interest Rates

Equity Bank clarified that while the monthly instalment amounts and repayment periods will remain unchanged, the reduction in the base rate will directly affect the total interest payable over the life of the loan.

As such, the Bank encouraged its customers to review their updated repayment schedules.

For clarification, the lender advised its clients to contact their Relationship Manager, visit the nearest Equity Bank branch, or reach out to the bank’s Contact Centre on 0763 000 000.

CBK Revises CBR Rates

Equity’s decision to lower loan interest rates comes days after the regulator revised the Central Bank Rate downward from 9.00% to 8.75%.

This decision, made during the Monetary Policy Committee (MPC) meeting, marks the 10th consecutive rate cut since August 2024 and brings borrowing costs to their lowest level since January 2023.

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

The MPC justified the continued easing based on several stable macroeconomic indicators:

Inflation: Eased to 4.4% in January 2026, remaining below the 5% midpoint of the target range.
Economic Growth: Real GDP growth for 2025 is estimated at 5%, with a projected acceleration to 5.5% in 2026.
Exchange Rate: The Kenyan shilling remained steady at approximately Sh129 against the US dollar.
Private Sector Credit: Growth accelerated slightly to 6.4% in January 2026.

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