Interest rates reduced by 300 basis points
Lower borrowing costs to boost business growth, job creation, and financial inclusion
Third interest rate cut within six months, following reductions in September and November 2024
Equity Bank Kenya has announced another reduction in interest rates on all new and existing Kenya Shilling-denominated credit facilities, reinforcing its commitment to making credit more affordable. The rate adjustment takes effect on February 13, 2025, for new loans and March 1, 2025, for existing loans.
This move follows the Central Bank of Kenya’s Monetary Policy Committee (MPC) decision to lower the Central Bank Rate (CBR) by 50 basis points to 10.75% and the Cash Reserve Ratio (CRR) by 100 basis points to 3.25%. By reducing lending rates by 3% (300 basis points), Equity Bank aims to stimulate economic activity, support businesses, and enhance financial inclusion.
More Affordable Credit for Businesses and Households
The revised Equity Bank Reference Rate (EBRR) of 14.39% plus a margin (based on customer risk profile) will apply across multiple credit products.
Moses Nyabanda, Managing Director of Equity Bank (Kenya) Limited, emphasized the bank’s commitment to supporting customers:
“We recognize the financial challenges many Kenyans are facing today. By lowering our lending rates, we are not only easing their financial burden but also creating opportunities for businesses to expand, families to invest in their futures, and individuals to improve their livelihoods.”
This is the third rate cut in six months, following similar reductions in September and November 2024.
Impact on the Economy
Lower interest rates will benefit the economy in multiple ways:
For Businesses: Access to cheaper credit will lower operational costs, encourage expansion, and drive job creation.
For Households: Reduced loan repayment amounts will increase disposable income, leading to higher consumer spending and improved financial stability.
The MPC’s decision on February 5, 2025, was aimed at injecting additional liquidity into the banking sector, which is expected to reduce the cost of funds and support private-sector lending and economic growth.
Equity Bank’s Commitment to Inclusive Growth
By adjusting its rates in alignment with monetary policy changes, Equity Bank ensures that customers directly benefit from lower borrowing costs, allowing them to expand their businesses, invest in key sectors, and contribute to economic development.
As the Kenyan economy continues to evolve, Equity Bank remains committed to supporting sustainable growth, financial inclusion, and economic resilience.
