Updated 10 November 2026
Equity Bank loan interest rates on Kenya shilling variable-rate loans are now set by a simple formula: the Central Bank Rate (CBR) plus a customer-specific premium, “K”. With the CBR at 8.75% after the Monetary Policy Committee held it on 7 October 2026, every such loan costs 8.75% plus your premium. The bank does not publish the premium. It depends on your risk profile, so Equity Bank loan interest rates differ between two borrowers taking the same product.
Checked on 8 November 2026 against Equity Bank Kenya’s customer notices Implementation of Revised Risk-Based Credit Pricing Model for Existing Facilities and Reduction of Loan Interest Rates, Equity’s Credit Tariff Guide (revised February 2025), and the CBK MPC press release of 7 October 2026.
Contents: The formula · What changed · Products covered · Fees · Worked example · Before you borrow · FAQ
How Equity Bank loan interest rates are calculated
Equity’s notice states the rule directly: Loan Interest Rate = Central Bank Rate (CBR) + Customer-Specific Premium (K). The CBR part is the same for everyone and moves only when CBK changes it. The K part is set by the bank for each customer under CBK’s Revised Risk-Based Credit Pricing Model, which took effect on 1 December 2025. It reflects your credit history, income, security and the product. Our KESONIA explainer sets out how CBK’s model works across banks.
| Component | Current value | Source |
|---|---|---|
| Central Bank Rate | 8.75% | CBK MPC, 7 October 2026 (held) |
| Premium (K) | Customer-specific, not published | Equity notices |
| Loan Application and Credit Evaluation fee (LACE) | Up to 5% | Credit Tariff Guide |
| Taxes on charges | Extra (charges quoted exclusive of taxes) | Credit Tariff Guide |
What changed for Equity Bank loan interest rates in 2026
- Before: loans were priced at the Equity Bank Reference Rate (EBRR) plus a margin. The February 2025 credit tariff guide still shows “EBRR + Margin” for every loan line.
- Existing loans: Kenya shilling variable-rate loans taken on or before 30 November 2025 moved from EBRR to CBR + K on 28 February 2026.
- CBR cut: after CBK cut the CBR from 9.00% to 8.75% on 10 February 2026, Equity said new loans would be priced at the prevailing CBR + K. On existing CBR-priced loans, the CBR part adjusted 30 days after the notice.
- Instalments: Equity said monthly instalments and repayment periods stay the same, so a rate change shows up in the total interest payable. It advised customers to review their updated repayment schedules.
Lenders across the market cut rates after CBK’s moves. Our report on Treasury’s push for lower lending rates has the policy background.
Loans covered by Equity Bank loan interest rates on CBR + K
The credit tariff guide applies the same reference-rate-plus-margin structure to every product line. These lines now follow CBR + K:
- Personal banking: salary advance, pension loans, Flexi Salo and check-off loans (unsecured, asset finance, development and mortgage).
- Groups and small business: Pamoja investment, Fanikisha Jamii, chama investment, Biashara Imara and micro capex loans.
- Mortgages and property: residential and commercial mortgages, development loans, equity release and plot purchase loans.
- Agriculture, asset finance and digital: farm working capital, asset finance, insurance premium financing and Eazzy Loans.
Equity Bank loan interest rates on foreign currency loans work differently. They are priced at a reference rate (SOFR for US dollars, SONIA for sterling, €STR for euros) plus a margin, subject to a floor.
Equity Bank loan fees in the tariff guide
| Charge | Amount |
|---|---|
| Loan Application and Credit Evaluation (LACE) | Up to 5% |
| Loan restructuring fee | Up to 5% |
| Temporary overdraft fee | 10% of the amount granted (minimum KSh 260) |
| Uncleared effects | KSh 300 or 3%, whichever is higher |
| Group member passbook | KSh 100 |
| Group member registration (annual) | KSh 500 |
All charges are exclusive of taxes. Fees can make a loan cost much more than Equity Bank loan interest rates alone suggest, so ask for the total cost of credit in writing.
Worked example of Equity Bank loan interest rates (illustration only)
Suppose your premium is 6%. Your rate is 8.75% + 6% = 14.75% a year. If your premium is 9%, it is 17.75%. On a KSh 500,000 loan, a LACE fee at the 5% maximum would be KSh 25,000 before taxes. These premiums are not Equity figures. Ask the bank for your actual K and plug the result into our Equity loan calculator to see the monthly instalment.
Before you accept Equity Bank loan interest rates
- Ask for your premium K in writing, and whether it can change during the loan.
- Ask for the key facts document showing the total cost of credit, fees and insurance.
- Check whether the loan is variable (it moves with the CBR) or fixed.
- Compare Equity Bank loan interest rates with offers from other banks that also use CBR-linked pricing.
- For clarifications, Equity’s contact centre is 0763 000 000.
Equity Bank loan interest rates: frequently asked questions
What is Equity Bank’s loan interest rate in 2026?
For Kenya shilling variable-rate loans, it is the Central Bank Rate (8.75% after CBK’s 7 October 2026 decision) plus a customer-specific premium that Equity does not publish.
What is premium K?
It is the risk-based margin Equity adds to the CBR for each customer under CBK’s revised risk-based credit pricing model.
Does Equity still use EBRR?
Not for Kenya shilling variable-rate loans. Existing loans moved from EBRR to CBR + K on 28 February 2026.
What fees does Equity charge on loans?
Its credit tariff guide lists a loan application and credit evaluation fee of up to 5% and a restructuring fee of up to 5%, plus taxes.
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