10 Banks With the Lowest Average Loan Interest Rates in Kenya – CBK December 2025 Report

The Central Bank of Kenya (CBK) released a December 2025 report on the banks with the lowest loan interest rates. According to the report, Citibank N.A. had the lowest rate at 10.17%, followed by Stanbic Bank Kenya Limited at 11.80%.

The list below contains 10 banks, including Citibank N.A. Kenya – 10.17%, Stanbic Bank Kenya Limited – 11.80%, Standard Chartered Bank Kenya Limited – 12.69%, Ecobank – 12.77%, Habib Bank A.G. Zurich – 13.41%, Guardian Bank Limited – 13.52%, ABSA Bank Kenya PLC – 13.75%, Consolidated Bank of Kenya Limited – 14.00%, Bank of Baroda – 14.04%, and Gulf African Bank Limited – 14.31%.

From the list, some of the most popular banks, such as KCB, Equity, and Co-operative Bank, did not feature.

Banks With the Lowest Loan Interest Rates

1. Citibank N.A. Kenya – 10.17%

Citibank N.A. Kenya offers one of the lowest average loan interest rates in Kenya at 10.17%, due to its specific target market, low-risk corporate client base, and low-cost funding model.

Key Reasons for Citibank’s Low Interest Rate

Low-Risk Corporate Borrowers: The bank lends almost exclusively to large multinational corporations, blue-chip companies, and top-tier institutions. These low-risk borrowers rarely default.
Low-Cost Funding: The bank relies on large corporate deposits rather than expensive retail savings accounts from the general public, keeping its own cost of funds low.
Low Retail Overhead: Unlike retail banks with hundreds of branches and automated teller machines, Citibank operates a lean business with very few physical locations. This reduces administrative costs.

2. Stanbic Bank Kenya Limited – 11.80%

Stanbic Bank Kenya Limited follows closely behind Citibank as the second-cheapest lender in Kenya, posting an average weighted loan interest rate of 11.80% in the Central Bank of Kenya (CBK) rankings.

While Citibank operates as a wholesale corporate bank, Stanbic is a full-service commercial bank. It manages to keep its average rate remarkably low due to several strategic factors.

Key Reasons for Stanbic’s 11.80% Rate

Heavy Institutional and Corporate Portfolio: A large percentage of Stanbic’s total loan book is allocated to top-tier corporates, multinationals, and large commercial projects. Under Kenya’s risk-based credit pricing framework, these stable entities qualify for the lowest possible risk margins. This pulls down the bank’s overall weighted average lending rate.
Very Low Cost of Savings: Stanbic pays some of the lowest interest rates in Kenya to retail savers, often averaging below 4%. By acquiring cheap deposits from the public, the bank lowers its internal cost of funds, allowing it to offer competitive rates on the lending side.
Adoption of the KESONIA Model: Stanbic was among the first major lenders to aggressively adopt the Kenya Shilling Overnight Interbank Average Rate (KESONIA) reference model. Transitioning away from older, rigid internal base rates allows the bank to pass on monetary policy relief quickly when macroeconomic indicators improve.
Targeted Subsidised Products: Stanbic partners with entities such as the Kenya Mortgage Refinancing Company (KMRC) to offer specific highly subsidised long-term facilities, such as affordable housing loans capped at single-digit rates, for example, 8.99%, which further lowers its overall lending average.

3. Standard Chartered Bank Kenya Limited – 12.69%

Standard Chartered Bank Kenya Limited (StanChart) ranks firmly as the third-cheapest lender in Kenya. Its average weighted loan interest rate of 12.69% sits comfortably below the country’s overall banking industry average, which typically hovers above 14%.

As an international Tier-1 bank operating a blend of retail and corporate banking, StanChart leverages structural advantages to maintain this highly competitive rate.

Key Reasons for Standard Chartered’s 12.69% Rate

Aggressive Digital Shift (Low Overhead): StanChart has aggressively downscaled its brick-and-mortar footprint in Kenya, selling off prime real estate and closing physical branches in favour of digital-first platforms. This structural pivot drastically cuts operational and administrative costs, savings that are passed on to borrowers through lower base margins.
Favourable Cost of Funds: The bank pays competitive interest rates to attract substantial corporate and retail deposits. Because it is viewed as a highly stable international institution, it can easily secure cheap capital, keeping its internal cost of funds significantly lower than smaller domestic lenders.
Selective, Low-Risk Lending Policy: StanChart employs strict risk filters, targeting blue-chip companies, large multinationals, and salaried “scheme” employees with highly predictable incomes. By steering clear of high-risk, speculative lending, its non-performing loan (NPL) ratio remains low, requiring fewer expensive loan-loss provisions and allowing it to charge a minimal risk premium under the Central Bank of Kenya (CBK) pricing model.
Wealth Management and Non-Funded Income Focus: A substantial portion of StanChart’s profitability comes from wealth management, investment products, and transactional fees rather than relying purely on heavy interest margins from loans. This structural diversity takes the pressure off its loan desk to maximise interest revenue.

4. Ecobank – 12.77%

Ecobank Kenya ranks as the fourth-cheapest lender in Kenya, posting a highly competitive average weighted loan interest rate of 12.77%.

As a subsidiary of the pan-African banking conglomerate Ecobank Transnational Incorporated (ETI), Ecobank Kenya has shifted its strategy in recent years. This structural change allows it to undercut traditional domestic giants such as Equity Bank and KCB.

Key Reasons for Ecobank’s 12.77% Rate

Pan-African Corporate and Trade Finance Focus: Ecobank’s core strength lies in cross-border trade finance and serving large multinational corporations operating across Africa. Because these large institutional borrowers have strong credit ratings and solid collateral, Ecobank charges them a very low risk premium, which significantly pulls down the bank’s weighted average rate.
Lean Retail Footprint: Unlike local competitors that maintain large and expensive branch networks across Kenya, Ecobank operates a highly streamlined model with very few physical branches. By using digital banking platforms to serve customers, it keeps its operational overhead low and passes those savings to borrowers.
Access to Cheap Parent Group Liquidity: Being part of a large pan-African network gives Ecobank Kenya access to diversified, lower-cost lines of credit and wholesale funding from international development finance institutions (DFIs). This lowers its internal cost of funds compared to local banks that rely mainly on domestic deposits.
Strict Credit Risk Appetite: Following previous periods of high non-performing loans (NPLs), Ecobank tightened its credit risk framework. The bank now focuses on lower-risk corporate clients and salaried individuals under corporate check-off arrangements, minimising the risk-based pricing additions mandated by the Central Bank of Kenya (CBK).