Equity Bank Kenya has reduced the interest rates charged on loans as promised.
In August, Equity Group CEO James Mwangi said that the lender would reduce the interest rates by almost double the reduction by the Central Bank of Kenya, which adjusted its rate from 13% to 12.75%, a reduction of 0.25%.
True to his words, in a statement released on September 8, Equity Bank Kenya announced the reduction of the interest rate on loans from 18.24% to 17.83%.
"Following the adjustment of the Central Bank Rate (CBR) on 6th August 2024 from 13% to 12.75%, we wish to inform our customers and the general public that we have reduced Equity Bank's Reference Rate (EBRR) from the current 18.24% to 17.83% effective 9th September 2024," part of the statement read.This means that going forward, Equity Bank customers will access loans at an interest rate of 17.83%. This is plus a margin not exceeding 8.5% per year.
Notably, new interest rates apply to all new Kenya shilling-denominated lenders.