KENYAN BANKING SECTOR INTEREST RATE ANALYSIS

Comprehensive Review of Lending and Deposit Rates - May 2025

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Interest Rate Landscape in Kenyan Banking

CBK data reveals a 9.18 percentage point gap between highest (20% - Commercial International Bank) and lowest (10.82% - Citibank) lending rates, with deposit rates ranging from 2.75% to 12.68%.

Top 3 Highest Lending Rates

  • Commercial International Bank Kenya Ltd - 20.00%
  • Access Bank Kenya - 19.98%
  • Middle East Bank Kenya - 19.87%

Top 3 Lowest Lending Rates

  • Citibank Kenya - 10.82%
  • Stanbic Bank Kenya Limited - 12.84%
  • Standard Chartered Bank Kenya - 13.35%

Top 3 Highest Deposit Rates

  • Credit Bank - 12.68%
  • ABC Bank - 12.63%
  • Family Bank - 11.64%

Top 3 Lowest Deposit Rates

  • Premier Bank - 2.75%
  • Standard Chartered - 3.14%
  • Cooperative Bank of Kenya - 6.44%

Interest Rate Distribution Across Banks

Detailed Bank-by-Bank Rate Comparison

The average lending rate stands at 15.44% while deposit rates average 8.7%, creating a significant 6.74 percentage point spread that represents the banking sector's average net interest margin.
Rank Bank Name Lending Rate Deposit Rate Interest Spread
1 Citibank Kenya 10.82% 7.29% 3.53%
2 Stanbic Bank Kenya 12.84% 7.56% 5.28%
3 Standard Chartered Bank Kenya Ltd 13.35% 3.14% 10.21%
4 Guardian Bank 13.57% 8.17% 5.40%
5 Consolidated Bank of Kenya 13.61% 7.31% 6.30%
6 Ecobank Kenya 13.72% 8.78% 4.94%
7 Paramount Bank Ltd 14.47% 10.81% 3.66%
8 Habib Bank 14.55% 8.34% 6.21%
9 Gulf African Bank 14.77% 8.54% 6.23%
10 Equity Bank Kenya Ltd 14.89% 10.76% 4.13%
11 Bank of India 14.94% 10.20% 4.74%
12 Premier Bank Kenya Ltd 15.12% 2.75% 12.37%
13 Bank of Baroda Kenya (Ltd) 15.12% 10.19% 4.93%
14 Diamond Trust Bank 15.44% 8.43% 7.01%
15 ABSA Bank Kenya 15.48% 8.88% 6.60%
16 Guaranty Trust Bank Kenya 15.61% 8.01% 7.60%
17 Victoria Commercial Bank 15.68% 8.70% 6.98%
18 NCBA Bank Kenya 15.68% 8.41% 7.27%
19 KCB 15.76% 7.07% 8.69%
20 Prime Bank Ltd 15.79% 10.39% 5.40%
21 Kingdom Bank Ltd 15.80% 10.22% 5.58%
22 National Bank of Kenya 15.87% 7.92% 7.95%
23 Co-operative Bank of Kenya 16.10% 6.44% 9.66%
24 M-Oriental Bank Ltd 16.17% 9.76% 6.41%
25 Family Bank Ltd 16.40% 11.64% 4.76%
26 Development Bank of Kenya 16.63% 10.83% 5.80%
27 DIB Bank Kenya 16.87% 9.72% 7.15%
28 UBA Bank Kenya 16.90% 8.70% 8.20%
29 I&M Bank Ltd 16.90% 8.38% 8.52%
30 African Banking Corporation Ltd 17.31% 12.63% 4.68%
31 Sidian Bank Ltd 17.68% 9.07% 8.61%
32 Bank of Africa Kenya Ltd 18.07% 9.52% 8.55%
33 SBM Bank Kenya Ltd 18.09% 10.12% 7.97%
34 HFC Limited 18.99% 6.81% 12.18%
35 Credit Bank PLC 19.41% 12.68% 6.73%
36 Middle East Bank (K) Ltd 19.87% 9.66% 10.21%
37 Access Bank Kenya 19.98% 10.31% 9.67%
38 Commercial International Bank Kenya 20.00% 10.42% 9.58%

Sector-Wide Trends and Treasury Operations

Average Lending Rate

15.44%

Across 38 commercial banks

Average Deposit Rate

8.70%

Savings account returns

Average Interest Spread

6.74%

Banking sector margin

Base Rate

9.75%

CBK reference rate

Treasury Bill Performance - June 2025

CBK raised KSh 57 billion in June bills, with the 364-day Treasury bill being most oversubscribed (KSh 43 billion bids against KSh 10 billion offer). Rates declined slightly across all tenors.