Equity Bank Announces Further Reduction of Loan Interest Rates

Equity Bank has announced a reduction of its interest rates on all new and existing loans for the second time.

In a statement on Monday, November 18, the bank disclosed that the reduction was due to the decision by the Central Bank Kenya's Monetary Policy Committee (MPC) to cut 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 Kenya's Monetary Policy Committee (MPC) to cut the Central Bank Rate (CBR) from 12.75% to 12.0%," read part of the statement.

The bank noted that the reduction, which will be effective beginning November 18, reflects the bank's commitment to making credit more affordable to customers.

"The reduction, effective 18th November 2024, reflects Equity Bank’s proactive commitment to making credit more affordable and accessible to a wider range of customers, furthering financial inclusion and stimulating economic activity across Kenya.

"The reduced interest rate on all new and existing Kenya Shilling-denominated credit facilities will comprise the revised Equity Bank Reference Rate (EBRR) of 17.39% plus a margin, currently capped at a maximum of 8.5% per annum. This reduction applies to a wide range of credit products reflecting the bank's commitment to fostering financial inclusion and supporting customers across diverse sectors," Equity Bank explained.

According to Equity Bank CEO James Mwangi, the reduction will provide relief to customers with existing loans and those seeking new credit facilities.

“The reduction in our Equity Bank Reference Rate (EBRR) from 17.83% to 17.39% is in response to the MPC’s decision, which aims to maintain economic stability amid improving inflation trends and favourable economic indicators.

“With this reduction, all new and existing customers with Kenya Shilling-denominated loans will benefit from lower borrowing costs, providing immediate relief and supporting their financial aspirations,” Mwangi remarked.

The bank maintained that its proactive rate adjustment aligns with policy goals, thus allowing customers to benefit from a stable economic environment.

On September 9, Equity Bank announced a reduction in its reference rate from 18.24 percent to 17.83 percent.