Kenyan banks, including Equity Bank, have begun lowering loan interest rates following the Central Bank of Kenya’s decision to reduce the Central Bank Rate (CBR) from 9.00 per cent to 8.75 per cent on February 10, 2026.
The move has triggered pricing adjustments across Kenya Shilling-denominated variable-rate loans, with lenders aligning their rates to the new benchmark.
Following the CBK rate cuts, Equity Bank has reduced its loan interest rates to align with the Central Bank of Kenya’s decision to lower the Central Bank Rate (CBR).
In a notice to customers dated February 11, the bank announced its adjustments, lowering the rates from 9.00 per cent to 8.75 per cent.
“Following the revision of the Central Bank Rate (CBR) by the Central Bank of Kenya from 9.00% to 8.75% on 10 February 2026, we wish to notify you of the following changes,” Equity Bank stated.
Equity Bank Adjustments
In its statement, the bank confirmed that all new Kenya Shilling variable-rate loans will now be priced at the prevailing CBR, currently 8.75 per cent, plus a Premium (K).
Existing Kenya Shilling variable-rate loans already priced at CBR plus Premium (K) will remain under the same framework. However, the CBR component for those facilities will decrease from 9.00 per cent to 8.75 per cent 30 days after the date of the notice.
“The CBR component will adjust from 9.00% to 8.75% after 30 days of this notice,” the bank stated.
Equity Bank also clarified that Kenya Shilling variable-rate loans disbursed before 1 December 2025 and currently priced at the Equity Bank Reference Rate (EBRR) plus Margin will continue under that structure for now.
Further, it stated that these loans will transition to CBR plus Premium (K) on 28 February 2026, as previously communicated.
Also Read: Equity Bank Announces 6-Hour Maintenance Affecting Digital Banking Channels
Borrowers Advised to Review Updated Repayment Schedules
The bank stated that monthly instalments and loan repayment periods will remain unchanged despite the Central Bank Rate revision.
However, the adjustment may affect the total interest payable over the life of the loan.
“The adjustments to CBR may affect the total interest payable on loans. You are encouraged to review your updated repayment schedule,” the notice stated.
Customers have been advised to review their updated repayment schedules to understand the impact of the rate change. For clarification, they can contact their Relationship Manager, visit the nearest Equity Bank branch, or reach the Contact Centre via 0763 000 000.
CBK Lowers Lending Rates by 25 Basis Points
The Central Bank of Kenya (CBK) has lowered the Central Bank Rate (CBR) again, marking the 10th straight cut since August 2024.
Also Read: What Equity and DTB’s New Loan Pricing Means for Kenyans
In a press release on Tuesday, February 10, CBK said that it lowered its benchmark lending rate by 25 basis points to 8.75 per cent from 9.00 per cent.
The lowering, which signals a continued shift toward a more accommodative monetary policy stance aimed at supporting credit growth and economic activity, follows the MPC meeting held on Tuesday.
“Having considered these developments, the Committee therefore concluded that there was scope for a further easing of the monetary policy stance by reducing the CBR by 25 basis points.”
CBK said that this will augment the previous policy actions aimed at stimulating lending by banks to the private sector and supporting economic activity, while ensuring inflationary expectations remain firmly anchored and the exchange rate remains stable.
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