Diamond Trust Bank (DTB) Kenya has cut its base lending rate by 20 basis points, effective July 1, 2025, reducing the rate from 14.41% to 14.21% for all Kenya shilling-denominated credit facilities.
- •DTB began the year with a base rate of 16.92% then implemented cuts of 0.50 percentage points in January, 0.37 in February, 0.35 in April/May, 0.55 in June, and 0.20 in July.
- •The latest July cut comes after the Central Bank of Kenya (CBK) executed its sixth consecutive policy rate cut in June, bringing the benchmark rate to 9.75%.
- •CBK has used monetary easing to encourage lower borrowing costs and revive credit uptake in a challenging economic climate.
The new rate applies to both new and existing loans. Borrowers with shilling-denominated credit facilities at DTB will see immediate reductions in monthly repayments and overall interest expenses. DTB highlighted its commitment to supporting clients through competitive and responsive pricing.
| Date | Rate Cut | Cumulative Change | New Base Rate |
|---|---|---|---|
| Jan 1 | 0.50 ppt | –0.50 ppt | 16.92% |
| Feb 15 | 0.37 ppt | –0.87 ppt | 16.55% |
| Apr 15 / May 1 | 0.35 ppt | –1.22 ppt | 16.20% |
| Jun 1 | 0.55 ppt | –1.77 ppt | 15.65% |
| Jul 1 | 0.20 ppt | –1.97 ppt | 14.21% |
Broader Market Context
More than 20 major banks in Kenya, including the likes of KCB, Equity Bank, and Co-operative Bank, have also cut lending rates in 2025. Industry analysts expect continued easing to stimulate lending activity among businesses and households, further supporting economic recovery.
Further changes may occur if CBK maintains its accommodative policy stance. The next Monetary Policy Committee meeting is slated for August 12, 2025.
