List Of Kenyan Banks Offering Cheapest Personal And Business Loans
- Central Bank of Kenya released new data showing Kenyan banks with the cheapest and highest loan rates over a five-year period
- The report revealed Premier Bank Limited had the cheapest rate at 9%, while Middle East Bank Limited recorded the highest rate (20.96%)
- The ratio of non-performing loans (NPLs) increased, with most Kenyans unable to repay their debt due to harsh economic conditions
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TUKO.co.ke journalist Japhet Ruto has over eight years of experience in financial, business, and technology reporting and offers profound insights into Kenyan and global economic trends.
Over 50% of Kenyans rely on loans to make ends meet and start businesses.
Where do Kenyans borrow from?
A report by Deloitte showed that mobile loans account for 54% of the total volume of loans borrowed by Kenyans.
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"Digital loans in Kenya are the most recurrently used loan behind social network and money-lender loans, Moreover, those with existing loans are over-indebted or struggling to pay," the report stated.
A new report by the Central Bank of Kenya (CBK) has shown the average lending rates of commercial banks.
Which banks offer the cheapest and highest loan rates?
The report revealed Premier Bank Limited has the cheapest rate at 9%, while Middle East Bank Limited has the highest rate (20.96%).
| Bank | Overall rate for personal and business loans |
| 1. Premier Bank Kenya Ltd | 9% |
| 2. Access Bank Kenya PLC | 11.37% |
| 3. Diamond Trust Bank | 12.39% |
| 4. Consolidated Bank | 13.39% |
| 5. Kingdom Bank | 14.02% |
| 6. Guardian Bank | 14.67% |
| 7. Ecobank Kenya Ltd | 14.72% |
| 8. Bank of India | 14.94% |
| 9. Co-operative Bank of Kenya Ltd | 15.18% |
| 10. Paramount Bank | 15.35% |
| 11. Habib Bank | 15.38% |
| 12. UBA Bank | 15.55% |
| 13. Gulf African Bank | 15.68% |
| 14. Equity Bank | 16.02% |
| 15. Family Bank | 16.13% |
| 16. DIB Bank | 16.27% |
| 17. KCB | 16.40% |
| 18. Development Bank | 16.46% |
| 19. National Bank | 16.82% |
| 20. Guaranty Trust Bank | 16.85% |
| 21. Prime Bank | 16.85% |
| 22. African Banking Corporation | 17.19% |
| 23. Standard Chartered Bank | 17.32% |
| 24. Stanbic Bank | 17.49% |
| 25. M-Oriental Bank | 17.58% |
| 26. Bank of Baroda | 17.73% |
| 27. Citibank Kenya | 17.98% |
| 28. I&M Bank | 18.48% |
| 29. Bank of Africa | 18.51% |
What impact did NPLs have on Kenyan banks?
Kenya's commercial banks counted losses as the ratio of non-performing loans (NPLs) increased.
The CBK Monetary Policy Committee (MPC) reported that the ratio of NPLs to gross loans increased to 16.1% in April 2024 after raising the base lending rate to 13%.
This represented a jump from 15.5% reported in February 2024, when Central Bank Rates(CBR) was 12.5%.
Proofreading by Mercy Nyambura Guthua, journalist and copy editor at TUKO.co.ke
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