Rebecka Guillemette
The Central Bank of Kenya revealed the commercial banks’ lending interest rates for September 2025 Sidian is the most expensive bank in Kenya for borrowers seeking a KSh 100,000 personal loan over 12 months On the other hand, Habib Bank AG Zurich offers the cheapest repayment for the same loan facility for a year TUKO.co.ke journalist Japhet Ruto has over eight years of experience in financial, business, and technology reporting, offering insights into Kenyan and global economic trends.
The Central Bank of Kenya (CBK) has disclosed the banks with the cheapest and costliest loans.
Kenyans seeking services in a local bank. Photo: Simon Maina.
Source: Getty Images The data shows the total cost of borrowing, including additional fees imposed by local lenders.
Which banks have the highest and lowest loan rates? According to data on the cost of credit analysis covering 33 banks, Habib Bank AG Zurich, a small lender, is the cheapest.
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On the other hand, Sidian is the most expensive bank in Kenya for borrowers seeking a KSh 100,000 personal loan over 12 months.
Housing Finance Corporation, ABC Bank, and Standard Chartered Bank are the other cheaper lenders, according to disclosures on a platform run by the Kenya Bankers Association (KBA.
Guardian and Access Bank Kenya offer the second and third-most-expensive loans for the same facility.
What is the cost of borrowing KSh 100,000? For a KSh 100,000 loan from Habib Bank AG Zurich, which charges an annual interest rate of 12.75% with no fees, Business Daily reported that the borrower would pay back KSh 12,750.
The same borrower would repay KSh 131,100 at Sidian, a difference of KSh 18,000, as the amount includes additional fees above its yearly interest rate of 16.22%.
With interest of KSh 16,220, bank fees of KSh 12,400, and third-party costs of KSh 2,480, a KSh 100,000 loan at Sidian is the most costly for the facility overall.
Kenyans at a banking hall. Photo: Simon Maina.
Source: Getty Images Despite pricing its facility at the maximum interest rate of 23.98% and not charging extra fees, the Middle East Bank’s total cost of credit is KSh 23,980.
Lenders charge the same for both secured and unsecured personal loans, according to the portal.
Lender
Cost of borrowing KSh 100,000
1. Habib Bank AG Zurich
KSh 12,750
2. Housing Finance Corporation
KSh 13,000
3. ABC
KSh 14,750
4. Stanchart
KSh 15,000
5. Paramount Bank
KSh 15,380
6. Equity Bank
KSh 23,785
7. Middle East Bank
KSh 23,980
8. Access Bank
KSh 24,780
9. Guardian Bank
KSh 28,050
10. Sidian Bank
KSh 31,000
Why is CBK pressuring banks? With eight straight rate cuts, the CBK has put pressure on commercial banks to reduce interest rates.
The benchmark rate is at 9.25%, down from a peak of 13% in August 2024.
Private sector loan growth recovered only slightly to an annual rate of 5% as of the end of September, in contrast to the double-digit historical increase.
Although average commercial banks’ loan rates decreased from 15.2% in August to 15.1% in September, they have stayed comparatively higher than the CBK rate over the last 12 months.
Source: TUKO.co.ke
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