Equity Bank Cuts Interest Rates for the Third Time, Easing Borrowers’ Burden
Equity Bank (Kenya) Limited
Equity Bank (Kenya) Limited has announced a fresh reduction in lending rates, marking the third rate cut in six months. The bank has lowered its interest rates by 300 basis points (34percent), a move expected to enhance credit affordability, support businesses, and stimulate economic growth.
The new rates, effective February 13, 2025, for new loans and March 1, 2025, for existing loans, follow the Central Bank of Kenya’s (CBK) decision to cut the Central Bank Rate (CBR) by 50 basis points to 10.75 percent and the Cash Reserve Ratio (CRR) by 100 basis points to 3.25 percent .
These measures are designed to inject more liquidity into the banking system, reducing the cost of funds and encouraging private-sector credit growth.
Equity Bank’s revised lending structure will see the Equity Bank Reference Rate (EBRR) set at 14.39 percent plus a margin based on customers’ risk profiles. The rate cut applies to a wide range of credit products, benefiting both businesses and individuals.
“We understand the financial pressures facing Kenyans today, and we’re committed to doing our part to ease that burden,” said Moses Nyabanda, Managing Director, Equity Bank (Kenya) Limited.
Additionally ,he stated that the rate cut it is not only about more than just lower interest rates but also it’s about opening doors for Kenyans to invest in their businesses, support their families, and secure their livelihoods.
The latest reduction follows similar cuts in September and November 2024, underscoring Equity Bank’s commitment to making credit more accessible. Lower interest rates are expected to reduce borrowing costs, enabling businesses to expand, create jobs, and stimulate consumer spending.
The Monetary Policy Committee (MPC), which met on February 5, 2025, cited the need for economic stimulus in its decision to ease monetary policy. By aligning with this directive, Equity Bank aims to bolster economic resilience, allowing businesses and households to benefit from more affordable financing.
As Kenya’s financial landscape evolves, Equity Bank remains dedicated to driving inclusive economic growth.
By passing on the benefits of lower interest rates, the bank seeks to empower individuals, strengthen businesses, and contribute to a more dynamic economic
