Equity Bank has announced a reduction in interest rates on Kenya shilling variable-rate loans following the Central Bank of Kenya’s (CBK) decision to lower the Central Bank Rate (CBR) from 9.00% to 8.75% on February 10, 2026.
In a notice to customers, the lender said all new variable-rate loans will now be priced at the prevailing CBR plus a premium.
Existing Kenya shilling variable-rate loans that are already based on CBR plus a premium will continue under the same pricing structure, with the CBR component adjusting from 9.00% to 8.75% 30 days after the notice.
“All new Kenya Shilling variable-rate loans will be priced based on the CBR (prevailing at the time, currently 8.75%) + Premium (K),” the bank stated.
For loans disbursed before December 1, 2025, which were previously based on the Equity Bank Reference Rate (EBRR) plus a margin, the bank will transition these facilities to the CBR-plus-premium structure on February 28, 2026, as previously communicated.
Equity Bank advised customers that while the monthly instalment amount and repayment period of loans remain unchanged, the adjustment in CBR may affect the total interest payable over the life of the loan.
Borrowers are encouraged to review their updated repayment schedules to understand the impact of the new rates.
The lender emphasized that it remains committed to providing clarity and support to clients throughout this transition. Customers seeking additional information or clarification are encouraged to contact their Relationship Manager, visit the nearest Equity Bank branch, or reach the bank’s Contact Centre at 0763 000 000.
“Please note that as the monthly instalment amount and repayment period of loans remain unchanged, the adjustments to CBR may affect the total interest payable on loans. You are encouraged to review your updated repayment schedule,” the notice read.
The move comes as part of ongoing efforts by financial institutions to align lending rates with macroeconomic policy changes, offering borrowers relief amid evolving market conditions.
