The Kenya Commercial Bank (KCB) has announced a reduction in interest rates charged on all its new and existing loans.
The move follows the recent adjustment of the Central Bank Rate (CBR) by the Central Bank of Kenya from 10.75 percent to 10.00 percent.
In a statement, the country’s largest lender by assets said it would lower its base lending rate from 14.6 percent to 13.85 percent per annum.
The new rate will take effect for new loan facilities from April 11, 2025, and for existing facilities from May 11, 2025.
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“In line with the Central Bank of Kenya’s recent Central Bank Rate (CBR) adjustment, we have reduced our base lending rate from 14.6% to 13.85% per annum,” the statement reads in part.
KCB clarified that the final lending rate will be determined based on individual customers’ credit profiles under its Risk-Based Credit Pricing Model.
“The new rates apply to Kenya Shilling-denominated facilities only. This reduction aims to provide more affordable credit and stimulate economic activity across the country.”
Under the risk-based loan pricing model, banks have a fixed base interest rate on which they add a premium or margin, which is determined by an assessment of the risk profile of a particular borrower.
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