Equity Bank has announced a further reduction in interest rates on both new and existing loans, marking its second rate cut this year.
In a statement issued on Monday, November 18, the bank attributed the decision to the Central Bank of Kenya’s Monetary Policy Committee (MPC) recent move to lower the Central Bank Rate (CBR).
“Equity Bank (K) Ltd is pleased to announce a reduction in interest rates on all new and existing Kenya shilling-denominated credit facilities, following the recent decision by the Central Bank of Kenya’s Monetary Policy Committee (MPC) to cut the Central Bank Rate (CBR) from 12.75% to 12.0%,” the statement read.
The revised rates, effective November 18, reflect the bank’s dedication to making borrowing more affordable while fostering financial inclusion and stimulating economic growth.
“The reduction reflects Equity Bank’s proactive commitment to enhancing credit affordability and accessibility for a wider range of customers, thereby driving financial inclusion and boosting economic activity across Kenya. The reduced rates will apply to all Kenya shilling-denominated loans and will comprise the revised Equity Bank Reference Rate (EBRR) of 17.39%, plus a margin capped at 8.5% per annum,” the bank stated.
According to Equity Bank CEO Dr. James Mwangi, the rate cut is designed to ease the financial burden on borrowers while supporting their financial goals.
“This adjustment in our Equity Bank Reference Rate (EBRR) from 17.83% to 17.39% is aligned with the MPC’s policy decision aimed at maintaining economic stability amid improving inflation and favorable economic indicators.
“All new and existing customers with Kenya shilling-denominated loans will benefit from lower borrowing costs, offering immediate relief and enabling them to achieve their financial aspirations,” Dr. Mwangi noted.
The bank emphasized that the move aligns with national economic policies, ensuring customers benefit from a stable macroeconomic environment.
This latest adjustment follows a prior rate reduction by Equity Bank on September 9, when it lowered its reference rate from 18.24% to 17.83%.
