Kenya’s commercial bank’s average rates have continued their downward trend, mirroring the the Central Bank of Kenya’s (CBK) recent monetary policy easing measures, the apex bank’s statistics for May show.
According to the CBK data, Citibank N.A Kenya (10.36%), Stanbic Bank (12.84%), Standard Chartered Bank (13.35%), Guardian Bank (13.57%) and Consolidated Bank (13.61%) are among the top five least expensive.
On the other hand HFC Limited (18.99%), Credit Bank (19.41%), Middle East Bank (19.87%), Access (19.98%) and Commercial International Bank (CIB) Kenya (20%) are among five banks with highest interest rates. This wide spread, with an industry average of 15.44%, indicates varying risk appetites, cost structures, and target markets among banks.
CBK data indicates that most banks have been shaving their interest rates or maintaining them month-on-month. The African Banking Corporation (ABC), for example, maintained an average 17.31% in April and May, after lowering it from 17.54% in March.
10 lenders, including Consolidated Bank, Co-operative Bank and its subsidiary Kingdom Bank, Access Bank and its new subsidiary National Bank, and Victoria Commercial Bank raised their average lending rates marginally between April and May.
The average deposit rate has declined from 10.45% in December 2024 to 8.70% in May 2025. Credit Bank and ABC lead with 12.68% and 12.63% respectively, followed by other lenders such as Family Bank, which nearly doubled its deposit rate from 6.39% in April to 11.64% in May.
The CBK has progressively lowered its benchmark Central Bank Rate (CBR) in recent months, reaching 9.75% as of June 10, 2025, down from 10.00% in April 2025 and an earlier peak of 13.00%.
“The Committee concluded that there was scope for a further easing of the monetary policy stance to augment the previous policy actions aimed at stimulating lending by banks to the private sector and supporting economic activity, while ensuring inflationary expectations remain firmly anchored, and the exchange rate remains stable,” CBK Governor Kamau Thugge said in June while lowering the benchmark lending rate to 9.75%.
Kenya’s overall inflation declined to 3.8% in May 2025 from 4.1%in April, and remained below the mid-point of the target range of 5±2.5%.
Overall inflation is expected to remain below the mid-point of the target range in the near term, supported by stability in food and energy prices, and continued exchange rate stability.