Best Banks in Kenya 2026: Cheapest Loans Ranked by CBK

Updated 29 October 2026

Updated October 2026. The best banks in Kenya for borrowing in 2026, judged on the one measure every bank must report the same way, are Standard Chartered (11.45%), Stanbic (11.93%) and I&M Bank (13.62%), the lowest average lending rates among the big banks on the Central Bank of Kenya’s August 2026 table. The market average was 14.34%. This guide ranks ten major banks by that CBK figure and adds what each is best for, their M-Pesa paybills and deposit insurance.

Best banks in Kenya 2026 ranked by average lending rate

Ranking shown is among these ten banks. CBK’s full table covers 36 banks; on it Standard Chartered was 2nd, Stanbic 3rd, I&M 8th, DTB 13th and Family Bank 31st.

Standard Chartered Bank Kenya: 11.45%

Standard Chartered Bank Kenya, part of the UK-listed group, was the 2nd cheapest lender of 36 on CBK’s August 2026 table at 11.45%. It focuses on salaried professionals, priority and private banking clients and corporates, so its low average partly reflects the lower-risk customers it lends to. Its paybill is 329329.

Stanbic Bank Kenya: 11.93%

Stanbic Bank Kenya, part of South Africa’s Standard Bank Group, came 3rd cheapest of 36 banks on CBK’s August 2026 lending-rate table. It is strongest in corporate, business and personal banking for salaried and higher-income clients rather than mass-market mobile lending. Its M-Pesa paybill is 600100, listed by Safaricom under the old CFC Stanbic name.

I&M Bank Kenya: 13.62%

I&M Bank is a mid-sized lender focused on business owners, families and professionals. CBK’s August 2026 table put it 8th cheapest of 36 banks, 0.72 percentage points below the sector average. It offers personal, asset finance, mortgage and business loans. Its M-Pesa paybill is 542542.

Absa Bank Kenya: 13.83%

Absa Bank Kenya, formerly Barclays Bank of Kenya, prices its loans below the market average on CBK’s August 2026 table. Its main retail products are personal unsecured loans for salaried customers, Timiza mobile loans, asset finance, mortgages and business banking credit. Safaricom still lists its M-Pesa paybill (303030) under the old Barclays name, which confuses some first-time depositors.

Diamond Trust Bank Kenya: 13.97%

Diamond Trust Bank (DTB) is a long-established mid-tier bank with a strong base among traders and family businesses. CBK’s August 2026 data put it 13th cheapest of 36 banks, 0.37 points below the market. When depositing via M-Pesa paybill 516600, DTB asks for the 10-digit account number.

NCBA Bank Kenya: 14.0%

NCBA, formed from the merger of NIC and CBA, is a major lender known for asset finance, especially vehicles. It is also the bank behind Safaricom’s M-Shwari and Fuliza credit. Besides those, it offers personal loans, mortgages and business loans. Its paybill 880100 still appears on Safaricom’s list under the old CBA name.

KCB Bank Kenya: 14.78%

KCB Bank is Kenya’s largest bank by assets and has the widest branch and agent footprint of the big lenders. It offers salary-backed personal loans, mobile credit through KCB M-Pesa, vehicle asset finance, mortgages and business loans. Its paybill 522522 is the most widely used bank paybill in the country. KCB Group is also listed on the NSE, so its customers can follow its results and dividends publicly.

Equity Bank Kenya: 14.9%

Equity Bank is one of Kenya’s biggest retail lenders, built on mass-market accounts and small-business banking. It lends through salary loans, Equitel and Equity mobile app loans, asset finance, mortgages and SME loans. It prices variable loans as a reference rate plus a customer-specific premium, so two customers can get quite different quotes. Its M-Pesa paybill is 247247.

Co-operative Bank of Kenya: 15.01%

Co-operative Bank has deep roots in Kenya’s co-operative movement and banks many Saccos and their members. Its loans include personal unsecured loans, MCo-op Cash mobile loans, asset finance, mortgages and loans aimed at Sacco and co-operative members. Its average lending rate in August 2026 was above the market average. Its M-Pesa paybill is 400200.

Family Bank: 15.89%

Family Bank is a Kenyan-owned retail bank with a strong presence in central Kenya and among small traders. On CBK’s August 2026 table it was 31st of 36 banks by cost, 1.55 points above the market average, so its loans are among the dearer ones. Its paybill is 222111, with a 12-digit account number. We have a separate guide to its published tariff.

Why the cheapest average isn’t always cheapest for you

A bank’s average reflects who it lends to. Banks serving mainly salaried professionals and corporates, such as Standard Chartered and Stanbic, show lower averages partly because their borrowers are lower risk. A mass-market bank may quote you a competitive rate if you have a steady salary and a clean credit record. Under CBK’s Risk-Based Credit Pricing Model your rate is the reference rate (CBR or KESONIA) plus your own premium, so always get written offers from two or three banks and compare the total cost of credit.

Best bank by need

• Lowest-cost loans for salaried professionals: Standard Chartered or Stanbic.
• Branch and agent reach: KCB, Kenya’s largest bank by assets, or Equity.
• Mobile credit: KCB M-Pesa (KCB), M-Shwari and Fuliza (NCBA), Equitel (Equity), MCo-op Cash (Co-op), Timiza (Absa).
• Vehicle asset finance: NCBA is known for it; compare with your own bank.
• Sacco and co-operative members: Co-operative Bank.
• Mid-sized business banking: I&M Bank or DTB.

Is my money safe?

All ten are CBK-licensed and members of KDIC, which insures deposits up to KSh 500,000 per depositor per bank. If you hold more, spreading it across banks or into government securities changes your risk. See MMF vs savings account and MMF vs fixed deposit.

Head-to-heads: Absa vs KCB, Stanbic vs Equity, I&M vs NCBA, Absa vs Stanbic vs Standard Chartered. All paybills: bank paybill numbers in Kenya. Official sources: Central Bank of Kenya, KDIC.

Frequently asked questions

Which is the best bank in Kenya in 2026?

On loan cost, Standard Chartered (11.45%) and Stanbic (11.93%) had the lowest average lending rates on CBK’s August 2026 table. The best bank for you also depends on branches, mobile services and fees.

Which bank has the cheapest loans in Kenya?

Among the big banks, Standard Chartered had the lowest average lending rate in August 2026 at 11.45%, against a market average of 14.34%.

Which is the biggest bank in Kenya?

KCB Bank is Kenya’s largest bank by assets.

Are bank deposits in Kenya insured?

Yes. KDIC covers up to KSh 500,000 per depositor per member bank.