Top banks reprice loans after Central Bank’s 10th rate cut
Commercial banks are also setting timelines for migrating older facilities to the common pricing framework...
✨ Key Highlights
Kenyan commercial banks, including NCBA Bank Kenya, KCB Bank Kenya, Equity Bank Kenya, and Family Bank, have begun repricing their loans in line with the new risk-based pricing framework and the Central Bank of Kenya’s (CBK) latest rate cut.
- The CBK lowered the benchmark rate (CBR) by 25 basis points to 8.75%, marking the 10th straight cut since August 2024.
- The new loan-pricing framework, effective December 1, 2025 for new facilities, prices all Kenya shilling variable-rate loans using the CBR as a common base, with a customer-specific premium.
- Banks are setting timelines, such as NCBA's March 12 date, for migrating older facilities to this new framework, while new variable-rate loans are immediately subject to the revised CBR.
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National Infrastructure Fund Bill Tabled; Banks Reprice Loans After CBK Rate Cut - February 2026
Kenya is moving to create the National Infrastructure Fund after the National Infrastructure Fund Bill, 2026, was tabled in Parliament. The fund aims to mobilize up to Sh5 trillion by privatizing State entities and selling government assets. Concurrently, Controller of Budget Margaret Nyakang’o has warned the government against becoming an 'IMF puppet' and raised concerns about this planned fund. In a separate development affecting the financial sector, commercial banks including NCBA Bank Kenya, KCB Bank Kenya, and Equity Bank Kenya have begun repricing their loans. This action is in response to the Central Bank of Kenya’s (CBK) latest rate cut and a new risk-based pricing framework.
