Equity Bank Kenya has announced a significant reduction in its lending rates, offering welcome relief to borrowers and a timely opportunity for Kenyans in the diaspora looking to invest back home.
The lender confirmed that all new Kenya shilling variable-rate loans will now be priced at 8.75%. This follows a recent policy decision by the Central Bank of Kenya (CBK) to cut the Central Bank Rate (CBR) by 25 basis points on February 10, 2026.
What the Rate Cut Means
Under the revised pricing structure:
- New shilling-denominated variable loans will be charged at CBR (8.75%) plus a customer-specific premium.
- Existing facilities already priced at CBR plus Premium will maintain the same structure, with the CBR component adjusting from 9.00% to 8.75% after the statutory 30-day notice period.
- Loans disbursed before December 1, 2025, which are currently priced under the Equity Bank Reference Rate (EBRR) plus margin, will continue under that framework until February 28, 2026, after which they will transition to CBR plus Premium, as earlier communicated by the bank.
Equity Bank also clarified that while monthly instalments and loan tenors will remain unchanged, the total interest payable will reduce. This change will reflect the lower benchmark rate.
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Why This Is Good News for Diaspora Kenyans
For Kenyans living abroad, this move is particularly impactful. Lower lending rates reduce the cost of shilling-denominated investments, making it more affordable to:
With many diaspora investors earning in stronger foreign currencies such as the US dollar, pound sterling, or euro, the reduced cost of local borrowing improves returns. In addition, it lowers risk when channeling funds back to Kenya.
Aligning With Monetary Policy Easing
The rate cut reflects CBK’s broader strategy to stimulate private sector credit growth, support economic recovery, and improve access to affordable financing. By promptly passing on the benefit to customers, Equity Bank Kenya reinforces its position as a leading lender. This applies to both local and diaspora-focused financial solutions.
Bottom Line
For diaspora Kenyans planning to build, invest, or expand businesses back home in 2026, Equity Bank’s revised lending rates present a timely and cost-effective financing window. As global economic conditions remain uncertain, cheaper credit at home could be the catalyst many investors have been waiting for.
Equity Bank operates a 24-hour Diaspora Support Center.
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