Family Bank Kenya has reduced its lending rates. In a statement on Monday, February 17, Family Bank said the move is meant to support business growth in Kenya and in line with the adjustment of Central Bank Rate (CBR) from 11.25% to 10.75% on February 5, 2025.
The Bank has reduced the minimum lending rates from 17.25% to 15.95% per year.
Family Bank explained that the reduction applies to loans issued in Kenyan shilling.
Additionally, it also means lower interest costs on new loans and reduced repayment amounts for existing loans from March 1, 2025.
“We wish to inform our customers that Family Bank has adjusted its Base Lending Rate downwards from 17.25% to 15.95% per annum for all new and existing Kenya Shilling-denominated credit facilities, effective 1st March 2025,” Family Bank said.
In line with the approved Risk Based Credit Pricing Model, the effective lending rate will be determined by Family Bank’s base lending rate plus a margin based on the customer’s credit risk profile.
The Bank explained that the reduction further reinforces it’s unwavering commitment to being the Preferred Bank for Biashara in Kenya.
For any clarifications, kindly contact the bank’s Relationship Manager, branch or the Contact Centre on 0703095445.
Family Bank December Average Rates
This is the second reduction of the Base rate by Family Bank in 2025.
In December 2024, Family Bank’s average commercial bank lending rates stood at 16.83.
This was lower than CBK’s average lending rate which was 16.89 in December compared to 17.22 in November 2024.
Also Read: CBK Reveals Banks with Lowest and Highest Loan Rates in Latest Report
CBK Lowers Lending Rates
CBK lowered its base lending rate by 50 basis points to 10.75 per cent down from 11.25 per cent, effectively cheapening interest charged on loans.
On February 5, the Monetary Policy Committee (MPC) chaired by CBK Governor Kamau Thugge, resolved to also lower the Cash Reserve Ratio (CRR) by 100 basis points to 3.25 per cent from 4.25 percent in order to further support the lowering of lending rates.
Also Read: Updated List of Interest Rates Announced by Banks in Kenya After CBK’s Directive
Besides, Dr. Thugge said CBK has begun on-site inspections to ensure banks implement the Risk-Based Credit Pricing Model (RBCPM) and lower interest rates accordingly.
“Under the recent Banking Act amendments, any bank failing to pass on the benefits of reduced funding costs to borrowers will be penalized,” he said.
The Kenya Bankers Association (KBA) had called for a further reduction in interest rates before the MPC meeting.
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