91-day T-bill8.748%▼ 0.002
182-day T-bill8.859%▼ 0.001
364-day T-bill9.027%▼ 0.012
Central Bank Rate8.75%07/10/2026
Inflation6.8%September 2026
Top MMF yield10.46%Madison
Sources: CBK auction, 26 Oct 2026 value date (change vs 19 Oct); CBK key rates; fund managers' published yields, as at 29 Oct 2026.

Best Banks for Personal Loans in Kenya 2026: Rates and Total Cost Compared

Best Banks for Personal Loans in Kenya 2026: Rates and Total Cost Compared

Updated 29 October 2026

The best banks for personal loans in Kenya in October 2026, judged by the average personal loan rate each bank reports to the Kenya Bankers Association’s Total Cost of Credit service, are HFC (11.96%), Sidian Bank (13.41%), National Bank (14.37%), Prime Bank (14.5%) and SBM Bank (14.64%). Among the biggest lenders, KCB averages 15.54%, Stanbic 15.54%, Standard Chartered 16.84%, Equity 16.91%, Absa 17.08% and NCBA 17.3%.

On a KSh 100,000 loan repaid over 12 months, that gap is worth roughly KSh 3,000 to KSh 7,000 in interest alone, before fees. This page ranks every commercial bank that publishes a personal loan rate, shows what each rate costs you in shillings, and explains how to get the real total cost before you sign. All rates were checked on October 28, 2026 on the Kenya Bankers Association Total Cost of Credit site (costofcredit.co.ke).

This guide is information, not financial advice. Rates change often, so confirm the full cost with the lender before you sign.

In this guide
  1. How We Ranked the Best Banks for Personal Loans
  2. Personal Loan Rates by Bank (October 2026)
  3. Best Bank for a Personal Loan by Borrower Type
  4. Interest Is Not the Whole Cost
  5. How to Get the Cheapest Personal Loan From a Bank
  6. Frequently Asked Questions

How We Ranked the Best Banks for Personal Loans

Every commercial bank in Kenya is licensed by the Central Bank of Kenya (CBK), and CBK requires banks to give borrowers a Total Cost of Credit (TCC) breakdown and a repayment schedule before a loan is signed. Banks report their rates to the Kenya Bankers Association’s TCC service, which shows the average, minimum and maximum rate for each loan type.

We used the average personal loan rate because it is published in the same format for every bank. Each rate is either the Central Bank Rate (8.75%) plus the bank’s premium, or the KESONIA overnight rate plus a premium, as the bank chose to report it. The date beside each figure is the date the bank last updated it. Microfinance banks are left out of the ranking because they serve a different, mostly business, market.

Personal Loan Rates by Bank (October 2026)

As at the update date shown for each bank, checked on October 28, 2026. The cost columns are our own calculation for a KSh 100,000 loan over 12 months on a reducing balance, interest only.

Rank Bank Average rate p.a. Range (min to max) Monthly instalment Interest over 12 months Rate updated
1 HFC (HFCB) 11.96% 11.21% to 12.21% KSh 8,883 KSh 6,596 4 Sep 2026
2 Sidian Bank 13.41% 10.5% to 22.84% KSh 8,951 KSh 7,412 22 Sep 2026
3 National Bank of Kenya 14.37% 14.22% to 15.64% KSh 8,996 KSh 7,954 5 Oct 2026
4 Prime Bank 14.5% 13% to 16% KSh 9,002 KSh 8,027 31 Mar 2026
5 SBM Bank 14.64% 10.56% to 21.32% KSh 9,009 KSh 8,106 19 Oct 2026
6 UBA Kenya 14.71% 12.46% to 16.96% KSh 9,012 KSh 8,146 2 Oct 2026
7 Victoria Commercial Bank 14.91% 12.75% to 15.95% KSh 9,022 KSh 8,259 2 Oct 2026
8 M-Oriental Bank 15.19% 12.6% to 17.5% KSh 9,035 KSh 8,418 24 Apr 2026
9 Bank of India 15.4% 15.4% KSh 9,045 KSh 8,537 8 Sep 2026
10 KCB Bank 15.54% 12.92% to 19.63% KSh 9,051 KSh 8,616 24 Sep 2026
10 Stanbic Bank 15.54% 8.76% to 22.61% KSh 9,051 KSh 8,616 6 Oct 2026
12 Paramount Bank 15.77% 13.05% to 18.48% KSh 9,062 KSh 8,746 10 Apr 2026
13 Development Bank of Kenya 16.12% 13.94% to 20.44% KSh 9,079 KSh 8,946 4 Sep 2026
14 Habib Bank AG Zurich 16.22% 14.22% to 19.27% KSh 9,083 KSh 9,000 9 Jun 2026
15 ABC Bank 16.61% 10.1% to 20.6% KSh 9,102 KSh 9,222 5 Oct 2026
16 DIB Bank 16.65% 16.65% KSh 9,104 KSh 9,246 13 Aug 2026
17 Standard Chartered 16.84% 15.75% to 20.25% KSh 9,113 KSh 9,355 2 Oct 2026
18 Equity Bank 16.91% not shown consistently KSh 9,116 KSh 9,394 4 Sep 2026
19 Ecobank 17% 16.5% to 17.5% KSh 9,120 KSh 9,446 11 Sep 2026
20 Absa Bank Kenya 17.08% 14.5% to 21.49% KSh 9,124 KSh 9,491 6 Oct 2026
21 NCBA Bank 17.3% 12.75% to 30.8% KSh 9,135 KSh 9,617 5 Oct 2026
22 Diamond Trust Bank 17.61% 14.84% to 24% KSh 9,149 KSh 9,793 2 Oct 2026
23 Consolidated Bank 18% 17% to 20% KSh 9,168 KSh 10,016 12 Oct 2026
24 Family Bank 18.89% 16.91% to 20.87% KSh 9,210 KSh 10,525 31 Mar 2026
25 Bank of Africa 19.02% 12.75% to 23.88% KSh 9,217 KSh 10,599 13 Apr 2026
26 GTBank 19.36% 13.46% to 24.96% KSh 9,233 KSh 10,794 7 Apr 2026
27 Kingdom Bank 20.62% 16.87% to 24.37% KSh 9,293 KSh 11,518 23 Sep 2026
28 Gulf African Bank 21.45% 17.85% to 25% KSh 9,333 KSh 11,996 31 Mar 2026
29 Guardian Bank 21.75% 20% to 23.5% KSh 9,347 KSh 12,169 2 Oct 2026
30 Middle East Bank 22.1% 20.25% to 23.25% KSh 9,364 KSh 12,371 31 Mar 2026
31 Bank of Baroda 23.43% 22.55% to 24.3% KSh 9,428 KSh 13,141 31 Mar 2026
32 Credit Bank 23.5% 15.75% to 31.24% KSh 9,432 KSh 13,181 1 Apr 2026
33 I&M Bank 25.32% 21.41% to 29.23% KSh 9,520 KSh 14,239 6 Oct 2026
34 Access Bank Kenya 29.98% 21.5% to 36.08% KSh 9,748 KSh 16,973 5 May 2026

Source: KBA Total Cost of Credit interest rate reports (average, minimum and maximum personal loan rates), checked on October 28, 2026. Co-operative Bank’s personal loan figure was not shown in a comparable form on the day, so it is left out rather than guessed. Equity’s minimum and maximum figures on the site did not bracket its average, so only the average is shown.

Best Bank for a Personal Loan by Borrower Type

Lowest average rate: HFC

HFC’s 11.96% average is the lowest of any commercial bank on the TCC site, with a narrow range of 11.21% to 12.21%. HFC is best known as a home-finance lender, so check whether its personal loan suits salaried borrowers in your situation. Our HFC loan calculator shows the monthly instalment.

Big banks with branches everywhere: KCB and Stanbic

If you want a tier-one bank with a large branch network, KCB and Stanbic tie at an average of 15.54%. KCB’s range runs from 12.92% to 19.63%, so a strong salary and a check-off arrangement can pull your price towards the bottom. Try the KCB loan calculator.

Widest spread: NCBA and Stanbic

NCBA’s range runs from 12.75% to 30.8% and Stanbic’s from 8.76% to 22.61%. A wide range means your own risk profile matters a lot: the same bank can be among the cheapest or among the dearest depending on your income, employer and credit record.

Low-cost mid-sized banks

Sidian, National Bank, Prime, SBM, UBA and Victoria all average below 15%. They have fewer branches, but for a one-off loan the interest saving can outweigh convenience.

Interest Is Not the Whole Cost

The rate in the table is only part of what you pay. A bank’s TCC statement also lists:

  • Arrangement or processing fees, usually a percentage of the loan.
  • Credit life insurance, which clears the loan if the borrower dies.
  • Excise duty on fees, set by law.
  • Legal and valuation fees for secured loans.

These can add several thousand shillings to a KSh 100,000 loan, so two banks with similar rates can end up far apart. That is why the Annual Percentage Rate (APR) on the TCC statement, which rolls all direct costs into one figure, is the number to compare.

How to Get the Cheapest Personal Loan From a Bank

  1. Check your credit record first. A clean report gets you nearer the bottom of a bank’s range. You can check your CRB status for free, and our CRB guide explains how to fix errors.
  2. Shortlist three banks from the table, including the one that holds your salary account.
  3. Ask each for a TCC statement and repayment schedule for the same amount and period. Banks must give you these before you sign.
  4. Compare the APR and total repayable, not the headline rate.
  5. Use check-off if your employer offers it. Loans repaid straight from payroll are usually priced lower.
  6. Read the early repayment terms in case you want to clear the loan sooner.

Our bank loan calculators cover every bank listed above. If you are a member of a Sacco, compare its offer too: our bank vs Sacco loans comparison shows why Sacco loans on deposits can be cheaper. For small, short loans, see the cheapest CBK-licensed loan apps, and remember mobile loans are far dearer per year.

Frequently Asked Questions

Which bank has the lowest personal loan interest rate in Kenya?

HFC, with an average personal loan rate of 11.96% on the KBA Total Cost of Credit site (updated 4 September 2026). Sidian Bank (13.41%) and National Bank (14.37%) follow.

What is KCB’s personal loan interest rate in 2026?

KCB reports an average personal loan rate of 15.54%, with a range of 12.92% to 19.63%, last updated 24 September 2026.

What is Equity Bank’s personal loan rate?

Equity reports an average personal loan rate of 16.91% on the TCC site, last updated 4 September 2026.

How much is the monthly repayment on a KSh 100,000 bank loan?

At 15% a year over 12 months on a reducing balance, it is about KSh 9,026 a month before fees. At 12% it is about KSh 8,885 and at 25% about KSh 9,504.

Are these banks licensed?

Yes. All the banks listed are commercial banks licensed by the Central Bank of Kenya. For digital lenders, use our guide on how to check if a loan app is licensed by CBK.

Comparing salaries before you borrow? See current openings on JobinKenya.

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About Author

Norah Waceke is a business journalist and editor at Business Radar with more than eight years of experience covering Kenya's economy, companies and markets. She previously worked at one of Kenya's leading digital news platforms, where she reported on business, finance and current affairs. A graduate of Multimedia University of Kenya, Norah focuses on clear, accurate reporting that helps readers understand the money stories shaping their lives and businesses.

More from Norah Waceke · Editorial policy

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