The Central Bank of Kenya (CBK) has published new data revealing which commercial banks are offering the cheapest and costliest loans in the country as of September 2025.
The report, drawn from CBK’s cost of credit analysis covering 33 lenders, highlights significant differences in how much Kenyans pay to borrow KSh 100,000 for a 12-month period. The data includes not only interest rates but also additional bank and third-party fees that often drive up the total cost of credit.
Most and Least Expensive Banks for Borrowers
According to the data, Habib Bank AG Zurich offers the cheapest personal loan facility, while Sidian Bank ranks as the most expensive for the same KSh 100,000 loan over one year.
Other affordable lenders include Housing Finance Corporation (HFC), ABC Bank, and Standard Chartered Bank. Meanwhile, Guardian Bank and Access Bank Kenya follow Sidian among the priciest.
| Rank | Bank | Total Cost of Borrowing (KSh 100,000) | Remarks |
|---|---|---|---|
| 1 | Habib Bank AG Zurich | 12,750 | Lowest total cost; 12.75% interest; no extra fees |
| 2 | Housing Finance Corporation (HFC) | 13,000 | Competitive rate; minimal charges |
| 3 | ABC Bank | 14,750 | Moderate interest; low fees |
| 4 | Standard Chartered Bank | 15,000 | Slightly higher but stable rate |
| 5 | Paramount Bank | 15,380 | Average lending cost |
| 6 | Equity Bank | 23,785 | Higher overall cost; extra charges apply |
| 7 | Middle East Bank | 23,980 | 23.98% interest; no added fees |
| 8 | Access Bank Kenya | 24,780 | Costly; additional third-party fees |
| 9 | Guardian Bank | 28,050 | Among top three costliest lenders |
| 10 | Sidian Bank | 31,100 | Highest overall cost; 16.22% interest plus multiple fees |
Loan Breakdown: Cheapest vs Costliest
A borrower taking a KSh 100,000 loan from Habib Bank AG Zurich at 12.75% interest would repay KSh 112,750 at the end of 12 months.
At Sidian Bank, however, the same loan would cost approximately KSh 131,100, factoring in an annual interest rate of 16.22%, bank fees of KSh 12,400, and third-party charges of KSh 2,480.
Although Middle East Bank applies the highest allowable rate of 23.98%, its total cost of credit (KSh 23,980) remains lower than Sidian’s because it does not add extra fees.
CBK’s Push for Lower Lending Rates
The CBK has been urging commercial banks to align their lending rates with the benchmark rate, which currently stands at 9.25%, down from a peak of 13% in August 2024.
Despite eight consecutive rate cuts, the average loan rate among commercial banks only declined marginally, from 15.2% in August to 15.1% in September, remaining significantly above the CBK rate.
Private sector credit growth has improved slightly to an annual rate of 5%, still lagging behind the double-digit expansion seen in previous years.
