The Central Bank of Kenya (CBK) has published the average commercial bank lending and deposit interest rates for March 2026.

In a notice dated May 5, CBK has reported that lending rates across commercial banks ranged from 10.80 percent to 18.57 percent, while deposit rates ranged from 3.12 percent to 11.39 percent.

According to the data published by CBK, the banks’ average interest rates for March 2026 show clear differences in borrowing costs across banks, with Citibank N. A Kenya has one of the most affordable lending rates at 10.80 percent.

Stanbic Bank Kenya Limited also remains among the lower-cost lenders at 11.75 percent, followed by Standard Chartered Bank Kenya Limited at 12.87 percent and Habib Bank A.G Zurich at 12.36 percent.

CBK Lists Banks with Highest Loan Interest Rates 

According to CBK, at the higher end, Credit Bank PLC (18.57 percent) and Bank of Africa Kenya Limited (18.41 percent) are among the most expensive lenders.

Additionally, banks such as Family Bank Limited (16.16 percent), Kingdom Bank Limited (17.73 percent), and Spire Bank Limited (17.83 percent) show significantly elevated lending rates.

Overall, the CBK data shows an average lending rate of 14.70 percent and a deposit rate of 6.86 percent.

Table Showing Different Banks’ Lending Rates

Here is a simple breakdown of the banks’ lending rates:

No. Bank Name Lending Interest Rate (%) Deposit Interest Rate (%)
1 Citibank N.A Kenya 10.80 4.92
2 Stanbic Bank Kenya Limited 11.75 6.41
3 Standard Chartered Bank Kenya Limited 12.87 3.12
4 Habib Bank A.G Zurich 12.36 6.18
5 Guardian Bank Limited 13.52 6.99
6 Bank of Baroda (Kenya) Limited 13.75 7.29
7 ABSA Bank Kenya PLC 13.56 6.94
8 Access Bank (Kenya) Limited 14.00 6.68
9 Paramount Bank Limited 14.01 8.80
10 Prime Bank Limited 14.09 8.12
11 Gulf African Bank Limited 14.24 6.68
12 Bank of India 14.24 6.96
13 Guaranty Trust Bank (K) Ltd 14.48 7.47
14 Diamond Trust Bank Kenya PLC 14.52 7.41
15 Victoria Commercial Bank PLC 14.61 7.81
16 M-Oriental Bank PLC 14.81 5.86
17 Premier Bank Kenya Limited 14.91 7.33
18 I&M Bank Limited 14.97 6.36
19 SBM Bank 15.00 6.56
20 Equity Bank Kenya Limited 15.09 6.26
21 KCB Bank Kenya Limited 15.12 5.06
22 Ecobank Kenya Limited 15.22 7.10
23 Commercial International Bank (CIB) Kenya Limited 15.28 5.90
24 NCBA Bank PLC 15.37 7.03
25 Sidian Bank Limited 15.42 11.23
26 Co-operative Bank of Kenya Limited 15.45 5.99
27 African Banking Corporation Limited 15.52 6.45
28 UBA Kenya Bank Limited 15.67 8.27
29 Middle East Bank (K) Limited 15.92 9.35
30 DIB Bank Kenya Limited 16.07 8.35
31 Family Bank Limited 16.16 8.99
32 Consolidated Bank of Kenya Limited 17.09 9.05
33 Development Bank of Kenya Limited 17.43 6.05
34 HFC Limited 17.65 8.76
35 Kingdom Bank Limited 17.73 8.82
36 Spire Bank Limited 17.83 11.39
37 Credit Bank PLC 18.57 7.42
38 Bank of Africa Kenya Limited 18.41 7.49
OVERALL AVERAGE 14.70

6.86

How Kenyan Banks Set Lending Rates Under Risk-Based Pricing System

Kenyan banks determine lending rates using the Central Bank of Kenya’s (CBK) Risk-Based Credit Pricing Model, revised in August 2025, which replaced arbitrary base rate pricing with a structured formula.

According to the model, the total cost of credit is calculated as KESONIA (Kenya Shilling Overnight Interbank Average Rate) plus a bank-specific premium (K) and applicable fees and charges. KESONIA, which stands at an estimated 11–13 percent in 2026, reflects the market cost of funds and is published daily by the CBK.

Banks then add a premium, typically ranging between 3 and 8 percent, which covers operational costs, profit margins, and borrower-specific risk factors such as credit history and loan repayment capacity. Additional fees may include processing, insurance, and legal charges, which are regulated by the CBK.

Loan pricing is also influenced by individual borrower risk profiles, where customers with strong credit scores and collateral access lower interest rates, while higher-risk borrowers face higher total costs, often exceeding 20 percent.

Institutional differences also exist, with some banks applying hybrid pricing systems for legacy loans, while others fully align with KESONIA-based pricing. Borrowers can compare real-time lending costs through the CBK’s costofcredit.go.ke platform.

CBK Retains Central Bank Rate at 8.75% in April 2026 Review

The Central Bank of Kenya (CBK), through its Monetary Policy Committee (MPC), retained the Central Bank Rate (CBR) at 8.75 percent during its latest review held on 8 April 2026.

In earlier decisions, the MPC had lowered the CBR by 25 basis points in February 2026 to 8.75 percent, before maintaining the same rate in the April meeting. The decision signals continued policy stability in the short term.

CBK indicated that the next Monetary Policy Committee meeting is expected in June 2026, in line with its bi-monthly review schedule.

CBK Lists Kenyan Banks Offering Lowest and Highest Loan Rates 
The Central Bank of Kenya (CBK) data on commercial banks’ average lending and deposit interest rates for March 2026. PHOTO/DN