NAIROBI, Kenya — Kenyan banks, including Equity Bank, have begun adjusting loan interest rates after the Central Bank of Kenya (CBK) reduced the Central Bank Rate (CBR) from 9.00pc to 8.75pc on February 10, 2026.
The move affects Kenya Shilling-denominated variable-rate loans, with lenders aligning pricing to the new benchmark. In a notice to customers dated February 11, Equity Bank confirmed that all new variable-rate loans will now be priced at the prevailing CBR of 8.75 per cent plus a Premium (K).
Existing variable-rate loans already structured as CBR plus Premium (K) will maintain the same framework, but the CBR component will drop from 9.00 per cent to 8.75 per cent 30 days after the notice, the bank said.
Loans issued before December 1, 2025, and priced at the Equity Bank Reference Rate (EBRR) plus Margin, will transition to CBR plus Premium (K) on February 28, 2026, as previously communicated.
Equity Bank emphasised that monthly instalments and repayment periods remain unchanged, though the total interest payable over the life of the loan may be affected.
Customers were advised to review updated repayment schedules and contact their Relationship Managers or the bank’s Contact Centre at 0763 000 000 for clarification.
The CBK described the 25-basis-point cut as the tenth consecutive CBR reduction since August 2024, signaling a sustained shift toward a more accommodative monetary policy.
The move is aimed at supporting credit growth, stimulating economic activity, and maintaining stable inflation expectations and exchange rates.
“Having considered these developments, the Committee concluded that there was scope for a further easing of the monetary policy stance by reducing the CBR by 25 basis points,” CBK stated. The central bank added that the cut complements previous measures designed to stimulate lending to the private sector and bolster economic activity.
Economists predict that the latest rate reduction will encourage borrowing, particularly for businesses and consumers, while continuing to moderate lending costs in a controlled inflation environment.
