The Central Bank of Kenya (CBK) has published updated lending and deposit interest rates for May 2025 across the country’s 38 commercial banks, showing clear contrasts in cost of credit and returns on savings. This important update comes at a time of increased economic uncertainty, mounting public scrutiny, and ongoing debate over banking fairness and affordability.
Topping the list of the cheapest banks to borrow from, Citibank N.A. Kenya offered the lowest lending rate at 10.36%, a notable drop from 10.82% the previous month, making it the most affordable bank for loans. Following closely were Stanbic Bank Kenya Limited at 12.84%, and Standard Chartered Bank Kenya Limited at 13.35% – both continuing to maintain competitive loan pricing.
Conversely, Commercial International Bank (CIB) Kenya Limited charged the highest lending rate at 20.00%, closely followed by Access Bank Kenya at 19.98% and Middle East Bank Kenya at 19.87%. These high rates significantly exceed the industry average lending rate of 15.44% for May 2025.
On the deposit side, Credit Bank PLC leads in rewarding savers, offering the highest deposit interest rate at 12.68%, followed by ABC Bank (12.63%) and Family Bank Limited (11.64%). These institutions are providing above-average returns, with the average deposit rate across all banks standing at 8.7%.
On the other hand, Premier Bank Kenya Limited had the lowest deposit rate at just 2.75%, followed by Standard Chartered Bank Kenya at 3.14%, and Co-operative Bank of Kenya at 6.44% rates that may not meet inflation-adjusted expectations for many savers.
Central Bank of Kenya Lists Banks with Lowest, Highest Loan and Deposit Rates.
These disclosures come shortly after the CBK reduced its Central Bank Rate (CBR) by 75 basis points to 10.00% in April 2025, marking the fifth consecutive rate cut since August 2024. The policy shift is part of ongoing efforts to stimulate lending and renew private sector growth.
Despite this, banks have been slow to pass the benefits to consumers, prompting tension between CBK and the Kenya Bankers Association (KBA). Discussions are underway on a new loan pricing model to create more transparency and fairness in bank charges.
The Supreme Court of Kenya reaffirmed that any increase in interest rates must be approved by the Cabinet Secretary for Finance, reinforcing the legal protection of borrowers.
Whether you’re borrowing or saving, it’s now more important than ever to compare banks and choose those that offer real value. Thank me later!
