Borrowing from a Kenyan bank in March 2026 could cost you 10.80% or 18.87%, depending entirely on which institution you walk into. That nearly 800-basis-point gap between the cheapest and most expensive lender tells you everything you need to know about how unevenly credit is priced in Kenya right now.
The Central Bank of Kenya published rates data for all 38 licensed commercial banks on May 5th. The weighted average lending rate settled at 14.70% in March 2026, down from 14.82% in December 2025 and the lowest reading since December 2023. Modest progress, but progress nonetheless.
International Banks Dominate the Cheap End
Citibank N.A. Kenya holds the lowest lending rate in the market at 10.80%, a full percentage point below the next cheapest lender. Stanbic Bank Kenya sits at 11.75%, followed closely by Standard Chartered Kenya at 11.87% and Habib AG Zurich at 12.66%.
This is not a coincidence. International banks typically carry lower costs of funds, which translates directly into cheaper credit for their customers. The sub-13% tier belongs almost entirely to foreign-owned institutions.
The Middle of the Market
Most Kenyans who borrow from a commercial bank will find their lender somewhere in the 13% to 16% range. Guardian Bank charges 13.50%, Absa Bank Kenya 13.75%, and Prime Bank 14.08%. The large local banks cluster here too: Diamond Trust Bank at 14.24%, I&M Bank at 14.81%, and KCB Bank at 15.02%.
Equity Bank, Kenya’s largest lender by customer base, charges 15.00%. It is the only tier-1 bank to raise rates over the past year, edging up 12 basis points, a direction that stands apart from the broader market trend.
Co-operative Bank charges 15.42%, NCBA Bank 15.28%, and National Bank of Kenya 15.72%.
The Expensive End Starts at 17%
Above 17% is where credit becomes genuinely punishing. HFC Limited charges 17.09%, Kingdom Bank 17.43%, SBM Bank Kenya 17.65%, and Access Bank Kenya 17.83%. At the very top, Bank of Africa Kenya charges 18.57% and Credit Bank 18.87%.
The full ranking from cheapest to most expensive:
| Rank | Bank | Rate |
|---|---|---|
| 1 | Citibank N.A. Kenya | 10.80% |
| 2 | Stanbic Bank Kenya | 11.75% |
| 3 | Standard Chartered Kenya | 11.87% |
| 4 | Habib AG Zurich | 12.66% |
| 5 | Guardian Bank | 13.50% |
| 6 | Bank of Baroda | 13.56% |
| 7 | Absa Bank Kenya | 13.75% |
| 8 | Consolidated Bank | 14.00% |
| 9 | Paramount Bank | 14.01% |
| 10 | Prime Bank | 14.08% |
| 11 | Gulf African Bank | 14.09% |
| 12 | Bank of India | 14.13% |
| 13 | Diamond Trust Bank | 14.24% |
| 14 | GTBank Kenya | 14.24% |
| 15 | Victoria Commercial Bank | 14.44% |
| 16 | M-Oriental Bank | 14.48% |
| 17 | Premier Bank | 14.68% |
| 18 | I&M Bank | 14.81% |
| 19 | Equity Bank | 15.00% |
| 20 | KCB Bank | 15.02% |
| 21 | CIB Kenya | 15.09% |
| 22 | Ecobank Kenya | 15.22% |
| 23 | NCBA Bank | 15.28% |
| 24 | Sidian Bank | 15.37% |
| 25 | Co-operative Bank | 15.42% |
| 26 | African Banking Corporation | 15.52% |
| 27 | UBA Kenya | 15.67% |
| 28 | National Bank of Kenya | 15.72% |
| 29 | Family Bank | 15.92% |
| 30 | Middle East Bank Kenya | 16.07% |
| 31 | Development Bank of Kenya | 16.16% |
| 32 | DIB Bank Kenya | 16.40% |
| 33 | HFC Limited | 17.09% |
| 34 | Kingdom Bank | 17.43% |
| 35 | SBM Bank Kenya | 17.65% |
| 36 | Access Bank Kenya | 17.83% |
| 37 | Bank of Africa Kenya | 18.57% |
| 38 | Credit Bank | 18.87% |
What the Gap Means for You
A borrower taking a KSh 5 million loan over five years pays dramatically different amounts depending on their bank. At Citibank’s 10.80%, monthly repayments run significantly lower than at Credit Bank’s 18.87%. The difference over five years can amount to hundreds of thousands of shillings — real money that either stays in your pocket or goes to the bank.
The CBK’s Risk-Based Credit Pricing Model, which took full effect in February 2026, was designed to bring more coherence to lending rates by anchoring all variable-rate loans to a common overnight interbank benchmark. Three months in, the data suggests the gap remains wide. Whether enforcement tightens or competition does the work, the market still has a long way to go.
The Monetary Policy Committee held the Central Bank Rate at 8.75% in April 2026, pausing the easing cycle. Unless the June decision resumes cuts, there is limited pressure on commercial banks to bring lending rates down further in the months ahead.
