DTB, Equity Bank and KCB issued coordinated notices confirming new base-rate structures for both new and existing variable-rate credit, marking the first broad shift under the Risk Based Credit Pricing Model that took effect on 1 December.
- •DTB will price new local-currency variable-rate loans at a 9%base rate from 11 December. Existing loans tied to the DTB Base Rate decline to 13.39% from 13.59% Facilities issued from 1 December will be adjusted once the 30-day notice period lapses.
- •Equity Bank will apply a 9% base rate to all new variable-rate loans from 10 December, and all facilities issued after 1 December will move from 9.25% to 9%.
- •KCB will price new variable-rate facilities at a 9%base rate from 11 December, with a customer-specific margin.
Loans tied to the Equity Bank Reference Rate will switch to CBR-based pricing by 28 February 2026. The bank will issue 30-day notices and variation letters before the transition.
Loans issued by KCB before 1 December will follow their current terms until the switch to the new framework by 28 February 2026. The bank says it will disclose all fees and total credit costs in line with CBK rules.
The three banks’ updates show a fast alignment of retail and business lending to the CBR. They also confirm that the transition for legacy products will run through February, tightening the link between monetary policy decisions and lending costs across the market.
