Major Credit Card Rate Changes in Kenya (November 2025)
KCB and Co-op Bank significantly increase rates to 42%, while Equity Bank reduces rates to 18% â what this means for your wallet.
Critical Rate Update
If you hold a KCB or Co-op Bank credit card, your interest rate has increased dramatically from around 22-24% to 42% annually. This change was effective November 2025.
The Changes at a Glance
Major banks in Kenya have made significant changes to their credit card interest rates in November 2025. While some banks increased rates dramatically, others took the opposite approach â creating the widest rate gap we've seen in Kenya's credit card market.
đ Rate Increases: KCB Bank
KCB Credit Cards
đ Rate Increases: Co-op Bank
Co-op Bank Credit Cards
đ Rate Decreases: Equity Bank (Good News!)
In stark contrast, Equity Bank reduced their credit card rates for the third time in 2025, following the Central Bank of Kenya's rate cuts. This makes Equity Bank credit cards the most affordable option in Kenya right now.
Equity Bank Credit Cards
What Do These Changes Mean for You?
If You Have a KCB or Co-op Credit Card
The cost of carrying a balance just more than doubled. Here's a real-world example:
Example: KES 100,000 Balance
What You Should Do
- Pay off your balance as soon as possible â At 42% interest, debt grows extremely fast
- Consider switching to Equity Bank â Their 18% rate is now less than half of KCB/Co-op rates
- Use the interest-free period wisely â Pay in full before the due date to avoid interest entirely
- Compare all your options â See which card offers the best value for your spending habits
Why Did This Happen?
The rate increases come despite the Central Bank of Kenya reducing the benchmark lending rate multiple times in 2025. While Equity Bank passed these savings to customers, KCB and Co-op Bank moved in the opposite direction.
Possible reasons include:
- Risk management â Banks may be seeing higher default rates on credit cards
- Profit optimization â Credit cards are a high-margin product for banks
- Alignment with global rates â International credit card rates often exceed 40%
- Competitive positioning â Focusing on premium customers who are less rate-sensitive
Market Impact
This creates a clear winner in Kenya's credit card market: Equity Bank now offers rates 57% lower than KCB and Co-op Bank (18% vs 42%). This is the largest rate differential we've seen between major Kenyan banks.
đĄ Smart Money Move
If you carry a balance on your KCB or Co-op credit card, switching to an Equity Bank card could save you more than KES 20,000 per year on a KES 100,000 balance.
Compare All Credit Cards âFrequently Asked Questions
Will my existing balance be affected?
Yes, the new rates apply to both existing and new balances immediately. If you have an outstanding balance, you're already being charged the new rate.
Can I switch to Equity Bank?
Yes! You can apply for an Equity Bank credit card and use it to pay off your KCB/Co-op balance (if your credit limit allows). This is called a balance transfer and can save you significant money.
Are there any cards with lower rates?
Equity Bank currently offers the lowest credit card rates among major Kenyan banks at 18% annually. Some smaller banks and SACCOs may offer competitive rates â check our comparison tool for the latest rates.
Should I cancel my KCB/Co-op card?
If you pay your full balance every month and take advantage of the interest-free period, the rate doesn't affect you. However, if you carry balances, switching to a lower-rate card makes financial sense.
Stay Informed
Credit card rates can change frequently. We monitor rates from all major Kenyan banks daily and alert you to significant changes. Sign up for our rate alerts to never miss an important update.