Here Are The Top 10 Cheapest Banks In Kenya

The Central Bank of Kenya has released a list of the top cheapest banks in Kenya in terms of lower interest rates on loans. The majority of the cheapest banks according to the CBK list are small banks with the majority of them lending to SMEs.

First Community Bank (FCB), Ecobank of Kenya, and HF Bank dominate the list of banks offering lower interest rates in Kenya in the latest regulatory disclosure that puts large players such as Absa and Equity Group among those with the steepest rates.

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The review puts the lowest rate at nine percent (FCB) and the highest at 17.6 percent (Credit Bank). The highest rate was 14.6 percent (Sidian) in December.

FCB, a shariah-compliant lender that was in March cleared to sell a 62.5 percent stake to Premier Bank Limited of Somalia, had a uniform rate of nine percent for personal, business, and corporate loans.

Ecobank Kenya follows with an average rate of 10.7 percent while HF and Access Bank Kenya follow with 11 and 11.2 percent respectively.

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Here is the list of the top 10 cheapest banks in Kenya:

1. First Community Bank – 9%
2. Ecobank – 10.7%
3. HFC – 11%
4. Access – 11.2%
5. Consolidated – 11.6%
6. Habib – 11.9%
7. Diamond Trust Bank – 12.1%
8. Citibank – 12.2%
9. KCB – 12.3%
10. StanChart – 12.3%

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The Central Bank of Kenya, the regulator, has been following how banks set their interest rates with the aim of cushioning customers against higher interest rates. The regulator has also been giving approvals to lenders to operationalize risk-based interest setting that has seen some lenders charge higher interest rates.

Most SME-based loans from the majority of lenders have higher interest rates due to the risks involved. SMEs are perceived as high-risk borrowers.

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