NAIROBI, Kenya, July 21 — Diamond Trust Bank Kenya Limited (DTB) has announced a downward revision of its base lending rate for Kenya Shilling-denominated credit facilities, reducing it from 14.41% to 14.21% per annum, effective July 1, 2025.
The lender says the move is in line with recent monetary policy adjustments by the Central Bank of Kenya (CBK), which lowered its benchmark Central Bank Rate (CBR) from 10.00% to 9.75% in June 2025.
“We wish to notify our esteemed customers and the general public that Diamond Trust Bank Kenya Limited has reduced the DTB Base Rate effective 1 July 2025,” the bank said in a public announcement.
The CBK’s decision marked its sixth consecutive cut in less than a year,a strategic push to stimulate credit growth and economic recovery in the wake of subdued private sector lending.
CBK’s Push to Unlock Borrowing
The CBK’s Monetary Policy Committee (MPC) on June 10, 2025, cited favorable inflation trends and moderate growth as key reasons for easing its policy stance.
Governor Kamau Thugge stated that the monetary easing was aimed at unlocking access to affordable credit, particularly for small and medium enterprises (SMEs) and households.
“The Committee noted that inflation expectations remained anchored and that there was room for accommodative monetary policy to continue supporting economic activity,” CBK said in a statement following the rate cut.
This latest move follows a 75 basis point reduction in April and several other cuts since August 2024, underscoring the CBK’s pro-growth posture amid relatively stable inflation.
DTB’s Lending Structure
Under the new structure, the interest rate on DTB’s Kenya Shilling credit facilities will comprise two components;The revised DTB Base Rate of 14.21% and Variable Margin based on the customer’s credit risk profile
Borrowers will experience slightly lower interest charges, though the final rate will vary by individual due to the customer-specific margin applied.
What It Means for Consumers
DTB’s adjustment signals responsiveness to CBK’s policy direction and a willingness to support borrowers during a period of softening economic indicators.
Lower base rates often encourage borrowing by reducing the overall cost of credit, particularly for personal loans, mortgages, and SME financing.
Financial analysts believe more commercial banks could follow suit in revising their lending rates downward as the effects of CBK’s easing ripple across the banking sector.
