DTB, Equity Bank and KCB have issued notices confirming new loan structures for both new and existing variable-rate loans.
The gesture commensurates the first shift under the Risk-Based Credit Pricing Model that came into effect on December 1, the start of a market-wide realignment of lending rates around the Central Bank Rate (CBR).
DTB will price new local-currency variable-rate loans at a 9 percent base rate from December 11. For existing facilities linked to the DTB Base Rate, the rate will decline to 13.39 percent from 13.59 percent, with facilities issued from December 1 to be adjusted after the mandatory 30-day notice period.
Equity Bank will apply a 9 percent base rate to all new variable-rate loans from December 10, while facilities issued after December 1 will move from a 9.25 percent base rate to 9 percent.
Also Read: CBK’s New KESONIA Loan Pricing Model Explained in Simple Terms as it Takes Effect December
KCB will also adopt a 9 percent base rate for new variable-rate facilities from December 11, with final pricing determined by a customer-specific margin. Loans currently tied to the Equity Bank Reference Rate will transition to CBR-based pricing by February 28, 2026, with the bank issuing 30-day notices and variation letters ahead of the switch.
KCB loans issued before December 1 will continue under existing terms until they move to the new framework by the same deadline, with the bank committing to full disclosure of fees and total credit costs in line with Central Bank of Kenya rules.
The new wave is not tied to tier I banks only, but all commercial banks in the country.
