Kenya Interest Rates 2026: Complete Guide
Comprehensive analysis of lending and savings interest rates across Kenya's banking sector. Compare rates from 60+ banks and 24+ loan products.
PesaMarket compiles interest rate data from all CBK-licensed banks and digital lenders in Kenya. The CBK base lending rate is 10.0% as of February 2026. Personal loan rates range from 13% to 25% per annum, mortgage rates from 11% to 16%, and savings account rates from 2% to 12%. All rates are verified against published bank schedules.
By PesaMarket Research Team · Last updated February 2026
Table of Contents
1. CBK Monetary Policy Rate (Central Bank Rate)
The Central Bank of Kenya (CBK) sets the base lending rate that influences all interest rates in the economy. The current CBK rate is 12%, last adjusted in December 2024.
How CBK Rate Affects Your Loans
- Personal loans: CBR + 3-6% = 15-18% typical rate
- Mortgages: CBR + 1-4% = 13-16% typical rate
- Business loans: CBR + 2-5% = 14-17% typical rate
Note: The CBK Monetary Policy Committee (MPC) meets every two months to review rates based on inflation and economic conditions.
2. Personal Loan Interest Rates in Kenya
Personal loan rates in Kenya range from 13% to 25% p.a., with an average of 16.5% for salaried employees with check-off facilities.
| Bank | Rate Range | Typical APR |
|---|---|---|
| KCB | 13.5-16.5% | 13.5 |
| Equity | 14-18% | 14 |
| Co-operative | 14-17% | 14 |
| ABSA | 14-19% | 14 |
| NCBA | 15-20% | 15 |
| Stanbic | 14-18% | 14 |
| Standard Chartered | 15-21% | 15 |
| DTB | 15-20% | 15 |
3. Mortgage Interest Rates in Kenya
Mortgage rates in Kenya range from 11% to 16% p.a. The Kenya Mortgage Refinance Company (KMRC) has helped bring rates down, with KMRC-backed mortgages offering rates as low as 11% p.a.
KMRC-Backed Mortgages
Available through KCB, Co-op, Stanbic for properties up to KES 8M
Standard Bank Mortgages
Regular mortgages for any property value, variable rates
| Bank | Mortgage Rate | Max Term |
|---|---|---|
| KCB | 12.5-14% | 20-25 years |
| Equity | 13-15% | 20-25 years |
| Co-operative | 12-14.5% | 20-25 years |
| ABSA | 13-15.5% | 20-25 years |
| NCBA | 13.5-16% | 20-25 years |
| Stanbic | 13-15% | 20-25 years |
| Standard Chartered | 12.5-14.5% | 20-25 years |
| DTB | 13-15% | 20-25 years |
4. Mobile & Digital Loan Interest Rates
Mobile loans offer instant access but come with higher effective interest rates. The Hustler Fund at 8% p.a. is the cheapest digital option, followed by KCB M-Pesa at approximately 14% p.a.
| Lender | Interest Rate | Max Amount | Approval Time |
|---|---|---|---|
| M-Shwari | 7.5% monthly (~90% p.a.) | KES 50,000 | Instant |
| KCB M-Pesa | 1.16% monthly (~14% p.a.) | KES 1,000,000 | Instant |
| Fuliza | 0.5% daily (~182% p.a.) | KES 70,000 | Instant |
| Tala | 3-11% monthly | KES 50,000 | 5 minutes |
| Branch | 1.25-17% monthly | KES 70,000 | 5 minutes |
| Zenka | 10-15% monthly | KES 30,000 | 5 minutes |
| Hustler Fund | 8% p.a. | KES 50,000 | Instant |
Important Note on Effective Rates
Mobile loan rates are often quoted monthly but can translate to very high annual rates. For example, M-Shwari's 7.5% monthly = 90% p.a., while Fuliza's 0.5% daily = 182% p.a. Always calculate the total cost before borrowing.
5. Savings & Deposit Interest Rates
Savings account rates in Kenya average 5.5% p.a., while fixed deposits offer 9.5% p.a. Money market funds and SACCOs often provide higher returns of 9-14% p.a.
| Bank | Savings Rate | Fixed Deposit (1yr) |
|---|---|---|
| KCB | 3-7% | 7-10% |
| Equity | 3-8% | 7-10% |
| Co-operative | 3.5-9% | 7-10% |
| ABSA | 2.5-6% | 7-10% |
| NCBA | 3-7% | 7-10% |
| Stanbic | 2-5% | 7-10% |
| Standard Chartered | 2-4% | 7-10% |
| DTB | 3-8% | 7-10% |
6. Bank-by-Bank Rate Comparison
Complete comparison of interest rates across major Kenyan banks for all product categories.
| Bank | Personal Loans | Mortgages | Business Loans | Savings |
|---|---|---|---|---|
| KCB | 13.5-16.5% | 12.5-14% | 13-16% | 3-7% |
| Equity | 14-18% | 13-15% | 14-17% | 3-8% |
| Co-operative | 14-17% | 12-14.5% | 14-16% | 3.5-9% |
| ABSA | 14-19% | 13-15.5% | 14-18% | 2.5-6% |
| NCBA | 15-20% | 13.5-16% | 15-19% | 3-7% |
| Stanbic | 14-18% | 13-15% | 14-17% | 2-5% |
| Standard Chartered | 15-21% | 12.5-14.5% | 14-18% | 2-4% |
| DTB | 15-20% | 13-15% | 15-18% | 3-8% |
7. Historical Interest Rate Trends
The CBK base rate has varied significantly over the years, affecting lending and savings rates across the economy.
| Year | CBK Rate | Change |
|---|---|---|
| 2026 | 12% | ↓0.50% |
| 2024 | 12.5% | ↑2.00% |
| 2023 | 10.5% | ↑2.25% |
| 2022 | 8.25% | ↑1.25% |
| 2021 | 7% | —0.00% |
| 2020 | 7% | ↓1.50% |
| 2019 | 8.5% | ↓0.50% |
| 2018 | 9% |
8. Methodology & Data Sources
This report compiles interest rate data from multiple sources to provide an accurate picture of Kenya's lending landscape.
Data Sources
- Central Bank of Kenya official publications
- Individual bank websites and rate cards
- Kenya Bankers Association reports
- PesaMarket product database (28+ products)
Update Frequency
This page is updated monthly or when significant rate changes occur. Last update: November 2026.
Disclaimer
Interest rates are subject to change and may vary based on individual creditworthiness, loan amount, and other factors. Always confirm current rates directly with lenders before making borrowing decisions.
Frequently Asked Questions
What is the CBK base lending rate in 2026?
The Central Bank of Kenya (CBK) base rate is currently 12% as of December 2024. This is the benchmark rate that influences all lending rates in Kenya. Commercial banks typically lend at CBR + 3-6% for personal loans.
Which bank has the lowest interest rate in Kenya?
KCB and Co-operative Bank typically offer the lowest personal loan rates starting from 13.5% p.a. for check-off loans to salaried employees. For mortgages, KMRC-backed loans offer rates as low as 11% p.a. Mobile loans from KCB M-Pesa are the cheapest digital option at 1.16% monthly.
Why are mobile loan rates so high in Kenya?
Mobile loan rates are high (30-180% p.a. effective) due to: High default rates (15-25%), small loan amounts increasing per-loan costs, instant disbursement convenience premium, and unsecured nature without collateral. For lower rates, consider bank personal loans or Hustler Fund.
How is interest calculated on loans in Kenya?
Kenyan banks primarily use the reducing balance method where interest is calculated on the outstanding principal, not the original amount. This results in lower total interest compared to flat rate calculations. Always ask for the effective annual rate (APR) to compare products accurately.
What affects interest rates in Kenya?
Key factors include: CBK monetary policy rate, inflation levels, government borrowing, bank competition, credit risk of borrowers, and global economic conditions. The CBK adjusts rates to manage inflation and economic growth.
Find the Best Rate for Your Needs
Compare 28+ loan products from 60+ lenders and find the lowest interest rate.
Cite This Report
PesaMarket Research. "Kenya Interest Rates 2026: Complete Guide." PesaMarket, March 2026. https://pesamarket.com/kenya-interest-rates-2026