DTB Announces Cheaper Loans for Kenyans After CBK Review

The Diamond Trust Bank Kenya Limited (DTB) has announced a reduction in its base lending rate, providing financial relief to borrowers amid shifting regulatory standards in the banking sector.

In a notice dated Friday, September 12, 2025, DTB announced that it has lowered its base lending rate from 14.21% per annum to 13.77% per annum.

“Diamond Trust Bank Kenya Limited (“DTB”) wishes to notify its esteemed customers and the general public that it has reduced the DTB Base Rate for variable interest rate Kenya Shilling-denominated credit facilities from 14.21% per annum to 13.77% per annum, effective 1 September 2025,” read the notice.

DTB Lowers Interest Rate After CBK Decision

This move is expected to lower borrowing costs for both individual and business clients.

According to the bank, the methodology for calculating interest rates for variable rate Kenya Shilling-denominated credit facilities shall be the sum of:

(a) The DTB Base Rate; and

(b) The Variable Margin representing the customer-specific Credit Risk Premium.

The rate adjustment follows a recent Central Bank of Kenya (CBK) directive aimed at standardizing interest rate benchmarks across the banking industry. In compliance, DTB has confirmed plans to transition from its proprietary base rate to the KESONIA/CBR model, as outlined in CBK’s published guidelines.

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The bank assured customers that further details regarding this transition will be communicated in due course.

DTB reaffirmed its commitment to supporting customers through evolving economic conditions and regulatory changes.

CBK Introduces New Loan Pricing Model for Kenyan Banks

Additionally, DTB customers seeking further clarification are encouraged to contact their relationship manager, visit the nearest DTB branch, or reach out via the contact center at 0719 031 888 or 0732 121 888.

On August 26, 2025, the Central Bank of Kenya (CBK) announced the issuance of a revised Risk-Based Credit Pricing Model (RBCPM) for the banking sector.

In a statement dated August 26, CBK said the final revised RBCPM follows a consultation period announced on April 23, 2025.

CBK stated that comments were received from diverse stakeholders, including banks, development partners, industry associations, non-bank financial institutions, consultancy firms, academia, corporate firms, and individuals. These comments were duly reviewed and considered in finalizing the revised RBCPM.

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CBK explained that the objective of the revised RBCPM is to strengthen monetary policy transmission, enhance transparency in lending, and promote responsible lending by aligning credit pricing with the borrowers’ risk profiles.

“The final revised RBCPM is anchored on the overnight interbank average rate, now renamed the Kenya Shilling Overnight Interbank Average (KESONIA), to align it to the international best practices,” CBK noted.

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