Kingdom Bank Limited has announced a reduction in its lending rates, effective immediately for new borrowers, following the recent downward adjustment of the Central Bank Rate (CBR) by the Central Bank of Kenya (CBK).
The move, which aligns with the industry-wide KESONIA (Risk-Based Credit Pricing Model), comes after the CBK’s announcement on December 11, 2025.
Key Changes to Loan Pricing
According to an official notice from the bank, the new pricing structure will affect both new and existing customers:
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New Loans: All new Kenya Shilling variable rate loans issued from December 11, 2025, will now be priced using a lower base rate of 9.0535%.
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Total Interest: The final interest rate for customers will consist of this base rate plus a customer-specific margin, determined by the bank’s risk-based pricing model.
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Existing Loans: Customers with loans taken before December 1, 2025, will see their facilities transition to the new framework by February 28, 2026, in accordance with CBK guidelines.
Transparent Transition
The bank emphasized that all facilities applied for since the beginning of December will be adjusted following the mandatory 30-day notice period.
Kingdom Bank also reiterated its commitment to transparency, stating that all applicable fees and the total cost of credit will be fully disclosed to borrowers.
“Kingdom Bank wishes to inform customers and the general public that all new Kenya Shilling variable rate loans… will be priced using a base rate of 9.0535%.”
Customers seeking further clarification are encouraged to contact their Relationship Managers or visit any Kingdom Bank branch countrywide.
