The Diamond Trust Bank (DTB) has lowered its lending rates following the Central Bank of Kenya’s move to cut the Central Bank Rate (CBR).
In a notice published on Friday, December 12, 2025, DTB stated that all new local-currency variable-rate loans will be priced according to CBK’s revised framework.
The bank also highlighted that existing variable-rate loans taken before December 1, 2025, will be reduced from 13.59% to 13.39% per annum.
DTB confirmed that the transition to the new pricing framework will be completed by February 28, 2026, ensuring compliance with CBK guidelines
Diamond Trust Bank (DTB) Reduce Lending Rates
Diamond Trust Bank confirmed the reduction of its base lending rate following the adjustment of the CBR to 9.0 per cent.
The bank stated that new local-currency-denominated variable-rate loans taken on or after December 11, 2025, will be priced at a 9.0% base rate.
“All new local currency variable-rate loans, effective 11 December 2025, will be priced at a base rate of 9.0% plus the applicable risk-based premium, in accordance with the RBCPM,” read part of the statement
The lender confirmed the shift to the new framework by the end of the transition period on February 28, 2026.
The bank further stated that all applicable fees, charges, and the total cost of credit will be aligned with CBK requirements.
Customers seeking clarification have been directed to contact their Relationship Managers, the Contact Centre, or visit any DTB branch across the country.
Other Banks on the Reduction of the Base Lending Rate
Earlier in the week, Equity Bank announced that all new local currency variable-rate loans issued from December 10, 2025, will be priced using the revised 9% CBR plus the applicable customer premium.
The bank noted that facilities issued after December 1, 2025, will also be adjusted to reflect the reduction of the benchmark rate from 9.25% to 9%, effective immediately.
“ALL NEW local currency variable-rate loans, effective 10th December 2025, will be priced under the revised CBR of 9%, plus the applicable customer premium (K). This change will also affect facilities issued after 1st December 2025, where such facilities pricing will accordingly be adjusted by the reduction in CBR from 9.25% to 9% effective immediately,” the statement read in part.
Also Read: CBK Explains Why It Decided to Lower Lending Rates Further
For existing variable-rate loans still linked to the Equity Bank Reference Rate, the transition to the CBR-based pricing framework will be completed by February 28, 2026.
CBK Lowers Central Bank Rate by 25 Basis Points to 9.00%
The Monetary Policy Committee (MPC) lowered the Central Bank Rate (CBR) by 25 basis points to 9.00 per cent from 9.25 per cent at its December 9, 2025, meeting.
During its deliberations, the Committee highlighted that Global growth had remained resilient and is projected at 3.2 per cent in 2025, supported by improved financial conditions and strong consumer and business spending, particularly in the United States.
Also Read: CBK Governor Issues Update on Loan Talks with IMF
The growth is also projected to slow to 3.1 per cent in 2026, mainly due to higher trade tariffs.
Weak global demand, elevated trade policy uncertainty, heightened geopolitical tensions in the Middle East, and the Russia-Ukraine conflict remain key risks to growth.
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