Which banks are offering the cheapest loans in the country right now? According to the newest data published by the Central Bank of Kenya (CBK), borrowers looking for affordable credit have clear winners — and costly lenders to avoid.
The CBK’s December 2025 lending rate report shows a slight dip in average lending rates to 14.82%, signaling a marginal easing in borrowing costs compared to earlier in the year.
Top Banks with the Cheapest Loan Rates
Here are the lenders offering the lowest average interest rates on loans in Kenya:
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Citibank N.A. Kenya – 10.17%
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Stanbic Bank Kenya Limited – 11.80%
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Standard Chartered Bank Kenya Limited – ~12.7%
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Ecobank Kenya Limited – ~12.8%
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Habib Bank A.G. Zurich – 13.41%
These banks are currently the most appealing for loan seekers, offering significantly lower rates compared with the industry average — especially Citibank, which stands out with rates just above 10%.
Why it matters: Lower interest rates can save businesses and individuals thousands in finance costs — especially on larger loans like mortgages or investment financing.
Banks Charging the Highest Loan Rates
On the flip side, some lenders still charge comparatively high interest on loans:
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Access Bank (Kenya) PLC tops the list of most expensive lenders at 19.55%
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Credit Bank PLC follows at 18.87%
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Bank of Africa Kenya Limited at 18.39%
Borrowers should be cautious with these lenders if minimizing loan costs is a priority, as the extra percentage points can significantly increase repayment over time.
What This Means for Borrowers
With the official average lending rate under 15%, borrowing costs remain high compared to some past periods but have shown overall stability. Choosing a bank with a lower interest rate can lead to meaningful savings, particularly for long-term loans like car financing or home mortgages.
Financial experts often advise borrowers to compare offers from multiple banks and consider factors like loan fees, repayment terms, and flexibility — not just headline interest rates — before committing.
