In a major announcement on 9th September 2024, Equity Bank has reduced its Equity Bank Reference Rate (EBRR) from 18.24% to 17.83%, following the recent adjustment of the Central Bank Rate (CBR). This move comes after the Central Bank of Kenya (CBK) lowered the CBR from 13% to 12.75% on 6th August 2024. The new rate adjustment is set to benefit all new Kenya shilling-denominated credit facilities.
According to Equity Bank’s statement, the final interest rate will now be the bank’s revised reference rate of 17.83% plus a margin, which currently stands at a maximum of 8.5% per annum. This translates into more affordable loan terms for both new and existing customers seeking credit facilities from Equity Bank. The move is likely to ease the cost of borrowing and enhance access to credit at a more competitive rate for Kenyans, especially amid the fluctuating economic conditions.
The reduction in the bank’s reference rate is a direct response to the Central Bank’s monetary policy decision aimed at stabilizing inflation and stimulating economic growth. By lowering the CBR, the Central Bank hopes to encourage more borrowing and investment, providing a much-needed boost to the economy. In turn, Equity Bank’s adjustment to its lending rates demonstrates its commitment to aligning with national economic goals while providing value to its customers.
Speaking on the development, the bank’s management assured its customers and the general public that it will continue to monitor market trends and make further adjustments if necessary. Equity Bank reaffirmed its dedication to supporting customers with favorable credit terms and adapting to changing financial landscapes.
For further inquiries or clarification on the new rates, Equity Bank advised customers to contact their Relationship Manager, visit any branch, or reach out to the bank’s Contact Centre at +254 763 000 000.
This strategic move underscores Equity Bank’s position as a key player in Kenya’s financial industry, continuously adapting to market changes and providing competitive solutions to meet the evolving needs of its customers. As one of Kenya’s leading banks, Equity remains committed to delivering accessible and affordable financial services while maintaining a robust partnership with its customer base.
