EQUITY BANK CUTS LENDING RATES TO SPUR ECONOMIC GROWTH

Equity Bank (Kenya) Ltd announced on November 18, 2024, a significant reduction in interest rates on all Kenya Shilling-denominated credit facilities, effective immediately. This move follows the Central Bank of Kenya’s (CBK) Monetary Policy Committee (MPC) decision to lower the Central Bank Rate (CBR) from 12.75% to 12.0%. 

The adjustment marks the second time in six months that Equity Bank has reduced its lending rates, demonstrating its dedication to supporting financial inclusion and stimulating economic activity. Customers with existing and new loans will benefit from the revised Equity Bank Reference Rate (EBRR) of 17.39%, down from 17.83%, plus a capped margin of 8.5% per annum. 

In a statement, Dr. James Mwangi, Equity Group Managing Director and CEO, emphasized the bank’s commitment to empowering individuals and businesses through affordable credit. “This reduction reflects our proactive approach to enhancing access to finance and aligns with the MPC’s efforts to maintain economic stability. Lower borrowing costs will provide immediate relief for customers, enabling them to achieve their financial goals while contributing to Kenya’s economic growth,” he said. 

Dr. Mwangi spoke during the release of Equity Group’s Q3 2024 financial results, highlighting the broader economic implications of the rate cut. By making credit more affordable, businesses are expected to access financing at reduced operational costs, fostering enterprise growth and job creation. 

For households, the reduced rates translate to lower monthly loan repayments and increased disposable income. This financial relief could stimulate consumer spending, further driving economic growth. 

The interest rate cut aligns with the government’s broader efforts to enhance economic resilience, particularly as Kenya experiences improving inflation trends and favorable economic indicators. 

The reduced rates are poised to benefit diverse sectors, from small businesses and entrepreneurs to individual borrowers. Businesses will now have an opportunity to invest in expansion and innovation, while households may channel additional disposable income toward savings or consumption. 

As part of its broader vision, Equity Bank’s strategy supports the creation of an inclusive financial ecosystem. The move to lower lending rates underscores the bank’s role in advancing economic empowerment across the country. 

By reducing the cost of borrowing, Equity Bank not only strengthens its competitive edge but also solidifies its position as a driver of Kenya’s financial inclusion and economic transformation. 

The reduction in lending rates by Equity Bank is more than just a financial adjustment,                                                     it is a bold step toward economic empowerment, fostering growth for businesses and families alike. By aligning with the Central Bank’s vision for stability and progress, Equity Bank reaffirms its pivotal role in Kenya’s financial sector. This initiative not only supports immediate financial relief but also lays the groundwork for a more inclusive and sustainable economic future for all Kenyans.