CBK Reveals Banks with Lowest and Highest Loan Interest Rates [FULL LIST]

The Central Bank of Kenya (CBK) has published the average commercial bank lending and deposit interest rates for March 2026.

In a notice dated May 5, CBK has reported that lending rates across commercial banks ranged from 10.80 percent to 18.57 percent, while deposit rates ranged from 3.12 percent to 11.39 percent.

According to the data published by CBK, the banks’ average interest rates for March 2026 show clear differences in borrowing costs across banks, with Citibank N. A Kenya has one of the most affordable lending rates at 10.80 percent.

Stanbic Bank Kenya Limited also remains among the lower-cost lenders at 11.75 percent, followed by Standard Chartered Bank Kenya Limited at 12.87 percent and Habib Bank A.G Zurich at 12.36 percent.

CBK Lists Banks with Highest Loan Interest Rates 

According to CBK, at the higher end, Credit Bank PLC (18.57 percent) and Bank of Africa Kenya Limited (18.41 percent) are among the most expensive lenders.

Additionally, banks such as Family Bank Limited (16.16 percent), Kingdom Bank Limited (17.73 percent), and Spire Bank Limited (17.83 percent) show significantly elevated lending rates.

Also Read: CBK Seeks to End Forced Insurance and Hidden Charges in Banks

Overall, the CBK data shows an average lending rate of 14.70 percent and a deposit rate of 6.86 percent.

Table Showing Different Banks’ Lending Rates

Here is a simple breakdown of the banks’ lending rates:

How Kenyan Banks Set Lending Rates Under Risk-Based Pricing System

Kenyan banks determine lending rates using the Central Bank of Kenya’s (CBK) Risk-Based Credit Pricing Model, revised in August 2025, which replaced arbitrary base rate pricing with a structured formula.

According to the model, the total cost of credit is calculated as KESONIA (Kenya Shilling Overnight Interbank Average Rate) plus a bank-specific premium (K) and applicable fees and charges. KESONIA, which stands at an estimated 11–13 percent in 2026, reflects the market cost of funds and is published daily by the CBK.

Also Read: CBK Licenses 32 More Digital Loan Apps as Total Hits 227

Banks then add a premium, typically ranging between 3 and 8 percent, which covers operational costs, profit margins, and borrower-specific risk factors such as credit history and loan repayment capacity. Additional fees may include processing, insurance, and legal charges, which are regulated by the CBK.

Loan pricing is also influenced by individual borrower risk profiles, where customers with strong credit scores and collateral access lower interest rates, while higher-risk borrowers face higher total costs, often exceeding 20 percent.

Institutional differences also exist, with some banks applying hybrid pricing systems for legacy loans, while others fully align with KESONIA-based pricing. Borrowers can compare real-time lending costs through the CBK’s costofcredit.go.ke platform.

CBK Retains Central Bank Rate at 8.75% in April 2026 Review

The Central Bank of Kenya (CBK), through its Monetary Policy Committee (MPC), retained the Central Bank Rate (CBR) at 8.75 percent during its latest review held on 8 April 2026.

In earlier decisions, the MPC had lowered the CBR by 25 basis points in February 2026 to 8.75 percent, before maintaining the same rate in the April meeting. The decision signals continued policy stability in the short term.

CBK indicated that the next Monetary Policy Committee meeting is expected in June 2026, in line with its bi-monthly review schedule.