The average cost of borrowing from commercial banks declined marginally in June, with the Central Bank of Kenya (CBK) reporting a slight easing in lending rates across the banking sector.
In its latest Banking Sector Interest Rates Report released on July 29, the regulator said the industry’s average lending rate dropped to 14.38 percent in June from 14.49 percent recorded in May, signaling a modest reduction in the cost of credit.
The report shows significant differences in lending rates among Kenya’s commercial banks, with Citibank N.A. Kenya offering the cheapest loans during the review period at an average lending rate of 10.49 percent.
It was followed by Standard Chartered Bank Kenya at 11.49 percent and Stanbic Bank Kenya at 11.50 percent.
At the opposite end of the market, Access Bank (Kenya) PLC remained the most expensive lender with an average lending rate of 17.57 percent, ahead of Bank of Africa Kenya Limited at 17.50 percent and SBM Bank Kenya Limited at 17.38 percent.
Average Lending Rates by Commercial Banks (June 2026)
| Rank | Bank | Average Lending Rate (%) |
| 1 | Citibank N.A. Kenya | 10.49 |
| 2 | Standard Chartered Bank Kenya Limited | 11.49 |
| 3 | Stanbic Bank Kenya Limited | 11.50 |
| 4 | Habib Bank A.G. Zurich | 12.58 |
| 5 | HFC Limited | 12.93 |
| 6 | Guardian Bank Limited | 13.47 |
| 7 | Absa Bank Kenya PLC | 13.48 |
| 8 | Bank of India | 13.92 |
| 9 | Paramount Bank Limited | 13.92 |
| 10 | Prime Bank Limited | 13.92 |
| 11 | Bank of Baroda (Kenya) Limited | 13.97 |
| 12 | Consolidated Bank of Kenya Limited | 14.00 |
| 13 | I&M Bank Limited | 14.00 |
| 14 | Development Bank of Kenya Limited | 14.00 |
| 15 | Diamond Trust Bank Kenya Limited | 14.09 |
| 16 | Gulf African Bank Limited | 14.22 |
| 17 | Guaranty Trust Bank (K) Ltd | 14.22 |
| 18 | Victoria Commercial Bank PLC | 14.24 |
| 19 | Credit Bank PLC | 14.38 |
| 20 | NCBA Bank Kenya PLC | 14.57 |
| 21 | M-Oriental Bank Limited | 14.58 |
| 22 | KCB Bank Kenya Limited | 14.81 |
| 23 | Commercial International Bank (CIB) Kenya Limited | 14.81 |
| 24 | Equity Bank Kenya Limited | 14.82 |
| 25 | Ecobank Kenya Limited | 15.00 |
| 26 | Co-operative Bank of Kenya Limited | 15.08 |
| 27 | Sidian Bank Limited | 15.19 |
| 28 | African Banking Corporation Limited | 15.46 |
| 29 | Premier Bank Kenya Limited | 15.49 |
| 30 | UBA Kenya Bank Limited | 15.65 |
| 31 | DIB Bank Kenya Limited | 15.72 |
| 32 | National Bank of Kenya Limited | 15.84 |
| 33 | Family Bank Limited | 15.91 |
| 34 | Middle East Bank (K) Limited | 16.22 |
| 35 | Kingdom Bank Limited | 17.02 |
| 36 | SBM Bank Kenya Limited | 17.38 |
| 37 | Bank of Africa Kenya Limited | 17.50 |
| 38 | Access Bank (Kenya) PLC | 17.57 |
The June figures indicate that while the overall cost of borrowing eased slightly, lending rates continued to vary widely among lenders, with a spread of more than seven percentage points separating the cheapest and the most expensive banks.
The variation reflects differences in banks’ funding costs, pricing strategies, customer risk profiles, and business models.
The publication of monthly lending rates is intended to enhance transparency in the banking sector by enabling borrowers to compare the cost of credit across institutions before making financing decisions.
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