NAIROBI, Kenya — Diamond Trust Bank Kenya Limited (DTB) has reduced its base lending rate for Kenya Shilling–denominated loans from 13.77% to 13.59% per annum, offering marginal relief to borrowers amid tight liquidity and elevated credit costs.
In a public notice issued on Wednesday, November 5, the lender said the new rate took effect on November 1, 2025, and applies to all variable interest rate facilities pegged on DTB’s base rate.
“Diamond Trust Bank Kenya Limited (DTB) wishes to notify its esteemed customers and the general public that it has reduced the DTB Base Rate for variable interest rate Kenya Shilling denominated credit facilities from 13.77% per annum to 13.59% per annum, effective 1 November 2025,” the notice read.
The final interest charged will continue to be calculated as the DTB Base Rate plus a variable margin reflecting the borrower’s specific credit risk premium. Customers with personal, business, or mortgage loans linked to the base rate are expected to see slightly lower repayments beginning this month.
The 0.18 percentage point cut, though modest, is seen as a welcome step for households and businesses strained by rising financing costs following a prolonged period of tight monetary conditions.
“The methodology for calculating the interest rate for variable-rate Kenya Shilling denominated credit facilities shall be the sum of DTB’s Base Rate and a Variable Margin representing the customer-specific Credit Risk Premium,” the bank stated, thanking customers for their continued support.
DTB, one of Kenya’s tier-one lenders, has demonstrated strong financial resilience through 2025. In its half-year financial results, the bank posted a profit after tax of Sh4.77 billion, up from Sh4.34 billion in 2024.
Net interest income rose by 11.8% to Sh15.86 billion, reflecting growth in the loan book, which expanded 7.7% to Sh288.46 billion. Customer deposits increased by 11.9% to Sh483.17 billion, while total assets climbed to Sh611.5 billion.
However, non-interest income declined slightly by 5%, largely due to a 55.6% drop in foreign exchange income amid subdued trading activity.
The bank also reported improved cost efficiency, with operating expenses falling by 2.9% to Sh6.62 billion and loan-loss provisions dropping by 42.7% to Sh886.26 million.
Founded in 1946, DTB operates across East Africa and remains one of Kenya’s most stable financial institutions. The latest rate adjustment aligns with the broader sector trend of cautious easing as inflation stabilises and lending conditions begin to normalise.
