Kenyan Borrowers Face Rising Costs as Commercial Banks Hike Interest Rates
Kenya’s commercial banks were poles apart in lending and deposit rates in August 2025, leaving borrowers paying through the nose while savers got meagre returns.
Data from Central Bank of Kenya (CBK) shows Access Bank (Kenya) PLC charged the highest lending rate at 19.79% making it the most expensive bank in the country. Credit Bank PLC was second at 19.44% while Middle East Bank (K) Limited and HFC Limited charged 18.77% and 18.62% respectively. UBA Kenya Bank Limited rounded up the top five most expensive lenders at 18.54%.
The near 20% lending rates mean customers are paying more to access credit. Analysts say the widening gap in borrowing costs across banks means consumers should shop for loans carefully.
On the other hand, CBK data also shows some banks offered the lowest deposit rates, limiting savers’ earnings. Premier Bank Kenya Limited had the lowest at 2.82%, Standard Chartered Bank Kenya Limited at 3.25%. Citibank N.A Kenya offered 6.07%, Co-operative Bank of Kenya Limited 6.08% while Stanbic Bank Kenya Limited recorded 6.12%.
The variation in savings rates means the banking sector is competitive. Financial experts say depositors should evaluate options keenly to get the best returns on their money.
Both borrowers and savers are feeling the pinch, August’s data shows a market where customers must be vigilant to get the best value from their banking choices.
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Kenyan Borrowers Face Rising Costs as Commercial Banks Hike Interest Rates