CBK Reveals Banks Offering Cheap Loans to Kenyans [FULL LIST]

Kenyan commercial banks recorded a decline in lending rates in June 2026.

The Central Bank of Kenya data shows that the average lending rate fell by 11 basis points month-on-month to 14.38% in June, down from 14.49% in May and 14.78% in February 2026. Meanwhile, the average deposit rate edged down by 2 basis points to 6.84%.

Banks Offering Cheaper Loans

Leading the market, Citibank N.A Kenya offered the lowest lending rate at 10.49%, giving borrowers the most affordable option.

It was followed by:

• Standard Chartered Bank Kenya Limited – 11.49%
• Stanbic Bank Kenya Limited – 11.50%
• Habib Bank A.G Zurich – 12.58%
• HFC Limited – 13.01%
• Guardian Bank Limited – 13.47%

More Banks Strengthen Access to Affordable Loans

At the same time, several banks priced loans just below or near the market average of 14.38%, widening access to affordable credit:

• Bank of India – 13.92%
• Paramount Bank Limited – 13.92%
• Prime Bank Limited – 13.92%
• Bank of Baroda (Kenya) Limited – 13.97%
• Consolidated Bank of Kenya Limited – 14.00%
• I&M Bank Limited – 14.00%
• Development Bank of Kenya Limited – 14.01%
• Diamond Trust Bank Kenya Limited – 14.09%
• Gulf African Bank Limited – 14.22%
• Guaranty Trust Bank (K) Ltd – 14.22%
• Victoria Commercial Bank PLC – 14.24%

Together, these lenders continued to expand the pool of cheaper loans across the market.

Also Read: KCB Lands Ksh12.9 Billion Deal to Boost SME Lending in Kenya

Mid-Tier Banks Hold Steady Near the Average

Meanwhile, major mid-tier lenders kept their rates close to the average, maintaining stable and competitive pricing as follows:

• NCBA Bank Kenya PLC – 14.57%
• M-Oriental Bank Limited – 14.58%
• KCB Bank Kenya Limited – 14.81%
• Commercial International Bank (CIB) Kenya Limited – 14.81%
• Equity Bank Kenya Limited – 14.82%
• Ecobank Kenya Limited – 15.00%
• Co-operative Bank of Kenya Limited – 15.08%

Higher-Cost Lenders Lag Behind

However, some banks continued to price loans above the average, limiting their presence in the cheaper loans segment:

• Sidian Bank Limited – 15.19%
• African Banking Corporation Limited – 15.46%
• Premier Bank Kenya Limited – 15.49%
• UBA Kenya Bank Limited – 15.65%
• DIB Bank Kenya Limited – 15.72%
• National Bank of Kenya Limited – 15.84%
• Family Bank Limited – 15.91%

At the top end, a few banks maintained significantly higher lending rates as follows:

• Middle East Bank (K) Limited – 16.22%
• Kingdom Bank Limited – 17.02%
• SBM Bank Kenya Limited – 17.38%
• Bank of Africa Kenya Limited – 17.50%
• Access Bank (Kenya) PLC – 17.57%
• Credit Bank PLC – 18.89% (highest)

These rates highlight the wide gap between the most affordable and most expensive loans.

Also Read: CBK Announces 25 New Licensed Digital Lenders in Kenya

As lending rates declined, the interest rate spread narrowed to 7.54% in June from 7.63% in May. This shift shows that banks tightened margins while offering cheaper loans.

Deposit Rates Show Mixed Trends

Banks also adjusted deposit rates unevenly. Some lenders offered higher returns:

• Credit Bank PLC – 11.05%
• Development Bank of Kenya Limited – 9.91%
• Middle East Bank (K) Limited – 9.19%
• Kingdom Bank Limited – 9.08%

In contrast, others maintained lower deposit rates:

• Standard Chartered Bank Kenya Limited – 3.00%
• Citibank N.A Kenya – 4.23%

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Kenyan banks cut lending rates to 14.38% in June 2026, with Citibank, Standard Chartered and Stanbic among lenders offering cheaper loans as rates fell. PHOTO/ Mwango Capital X