KCB Bank Kenya has announced a reduction in its base lending rate from 15.6% to 14.6%, following recent monetary policy adjustments by the Central Bank of Kenya (CBK). The 100 basis point reduction, which took effect on February 10, 2025, makes KCB the second major bank to lower its rates in response to CBK’s revised Central Bank Rate (CBR) and Cash Reserve Ratio (CRR).
In an official statement, KCB Bank Kenya confirmed the adjustment, citing the CBK’s policy changes as the primary driver. “In view of the recent adjustments of the Central Bank Rate (CBR) and Cash Reserve Ratio (CRR) by the Central Bank of Kenya, KCB Bank Kenya wishes to notify our customers and the public that we have reduced our base lending rate from 15.6% to 14.6% per annum,” the bank stated.
The revised base rate will apply to both new and existing Kenya shilling-denominated credit facilities, except for fixed-rate loans. KCB further noted that the final lending rate will be determined based on a customer-specific margin, aligned with the approved Risk-Based Credit Pricing Model.
The move comes amid ongoing monetary policy interventions by the CBK aimed at stabilizing inflation, encouraging lending, and supporting economic growth. Recent months have seen adjustments to the Central Bank Rate, influencing commercial banks’ borrowing and lending costs.
KCB Bank’s decision follows a similar move by another leading bank, reflecting a broader trend in the financial sector responding to monetary policy shifts. Analysts suggest that lower lending rates could ease borrowing costs for individuals and businesses, potentially stimulating investment and economic activity.
Customers seeking more details on the new rates have been advised to visit KCB branches or contact the bank directly via their official customer service channels.
As commercial banks continue to adjust their rates in line with CBK’s policies, borrowers and businesses will be closely monitoring the impact on loan affordability and financial accessibility in the coming months.
