CBK Reveals Banks With Lowest Loan Interest Rates [May 2025]

Hello and welcome to the Money News Roundup Newsletter. Today, we cover the banks with the lowest and highest loan interest rates as revealed by the Central Bank of Kenya (CBK). We also detail the Nairobi county government’s caution to Nairobi residents after the theft of goods in the CBD.

‍Situational Awareness: President William Ruto assented to the Finance Bill 2025 on Thursday. The Bill became an Act after the presidential assent and will take effect from July 1. 

‍Loan Interest Rates for Banks in May 2025

The Central Bank of Kenya (CBK) has revealed that Citibank N.A Kenya had the lowest loan interest rate in May at 10.36%, a reduction of 0.46% from the rate in April 2024.

As detailed in a notice carried in today's daily, CBK documented that Citibank N.A was one of the banks that recorded the a drop within that period.

Other banks with the lowest loan interest rates were Stanbic Bank Kenya Limited (12.84%), Standard Chartered Bank Kenya Limited (13.35%), Guardian Bank Limited (13.57%), Consolidated Bank of Kenya Limited (13.61%), Ecobank Kenya Limited (13.72%), Paramount Bank Limited (14.47%) and Habib Bank A.G Zurich (14.55%).

Also in the top 10 banks with the cheapest loans were Gulf African Bank Limited (14.77%) and Equity Bank Kenya Limited (14.89%).

The rates for the other banks were Bank of India (14.94%), Premier Bank Kenya Limited (15.12%), Bank of Baroda (Kenya) Limited (15.12%), Diamond Trust Bank Kenya Limited (15.44%), ABSA Bank Kenya PLC (15.48%), Guaranty Trust Bank (K) Ltd (15.61%), Victoria Commercial Bank PLC (15.68%), NCBA Bank Kenya PLC (15.68%), KCB Bank Kenya Limited (15.76%) and Prime Bank Limited (15.79%).

The other rates listed were Kingdom Bank Limited (15.80%), National Bank of Kenya (15.87%), Co-operative Bank of Kenya Limited (16.10%), M-Oriental Bank Limited (16.17%) and Family Bank Limited (16.40%).

Others included Development Bank of Kenya Limited (16.63%), DIB Bank Kenya Limited (16.87%), UBA Kenya Bank Limited (16.90%), I&M Bank Limited (16.90%), African Banking Corporation Limited (17.31%), Sidian Bank Limited (17.68%), Bank of Africa Kenya Limited (18.07%), SBM Bank Kenya Limited (18.09), HFC Limited (18.99%), Credit Bank PLC (19.41%), Middle East Bank (K) Limited (19.87%) and Access Bank (Kenya) Limited (19.98%).

Commercial International Bank (CIB) Kenya Limited had the highest rate of (20.00%).

‍Govt Rolls Out Measures for MSMEs After Protests

MSME PS Susan Mang'eni has announced that the government will be establishing a rapid response assessment team to document all MSMEs that were affected during the Wednesday protests.

Additionally, the PS stated that the government will also coordinate with insurance companies for expedited claims processing for the affected businesses.

As reported in the People Daily, the government will also help fast-track processing for business registration and license renewal for affected enterprises. 

"Statistics show the country loses an estimated Ksh3 billion daily during protests, most of which is borne by MSMEs, who have the least financial resilience," read the statement in part.

"Our Immediate Response to strengthen the MSME Sector will include consideration of the establishment of a riot risk response mechanism to manage such situations and support recovery in future to take care of political and climate disaster-related emergencies."

‍Court Declares Nairobi County Finance Act 2023 Unconstitutional 

The High Court has nullified the Nairobi City County Finance Act, 2023, declaring it unconstitutional for lacking public participation and a proper pricing policy.

As detailed by the Business Daily, Justice Bahati Mwamuye ruled that only levies and fees under the 2022 Finance Act or earlier will remain in force. 

The invalidated Act raised reserved parking fees for private use from Ksh1,000 to Ksh1,500 per day.

Other charges affected include the fee for the display of motor vehicles for sale on the road reserve, which was increased from Ksh10,000 to Ksh15,000 per square meter per year.

‍Report Reveals Most Counterfeit Goods Kenyans Buy

A report by the anti-counterfeit authority has revealed that fertilizers and animal feeds are the most counterfeit items Kenyans buy.

As revealed in the 2025 Consumer-Level Survey Report, car maintenance products, customization products, and motorcycle parts were the leading counterfeit goods in the automotive sector.

"These findings indicate a widespread issue of counterfeit automotive parts, particularly in areas critical to vehicle maintenance and safety. The prevalence of counterfeit four-wheeler parts presents serious risks to road safety and vehicle reliability," read the report in part

Meanwhile, in the construction sector, counterfeit cement, concrete paving blocks, clay roofing tiles, and other cement-manufactured products were the most common counterfeit goods.

Also listed were steel and iron sheets, ballast, quarry machine-cut stones, and PPC/CPVC/PP pipes were also prominent.

"Consumer electronics, including smartphones and laptops, had a 27.02% counterfeiting rate, while home appliances (22.22%) and smart home devices (21.40%) were also noted. Counterfeit batteries, which pose risks of overheating and explosions, were reported by 18.66% of respondents," read the report in part.

Nairobi Residents Warned Over Purchases After Protests

Nairobi residents have been advised to exercise due diligence when purchasing goods following theft witnessed during the Wednesday protests.

As detailed in Nairobi Leo, the county government noted that those who stole the items are likely to begin selling them to innocent Kenyans.

It is a criminal offense to be in possession of stolen items, and if someone fails to give an account of the stolen items risk being found guilty of a misdemeanor.

“I want to ask Nairobi residents, if someone comes to sell gas to you, ask them where they got that cylinder. If they bring a computer and phone to you, ask them where they found the items,” Nairobi County Chief Officer for Environment Geoffrey Mosiria stated.

Kenya Power Explains 2-Hour Disruption of Tokens Purchase

As reported by Kenyans.co.ke, many Kenyans were unable to purchase tokens on Thursday night due to an emergency maintenance exercise.

The utility firm reported that the maintenance was scheduled from 11 pm for two hours.

Kenya Power explained that the emergency maintenance was necessary to help improve the service delivery for Kenyans.

“Kenya Power wishes to inform its prepaid customers that electricity token purchase services will be temporarily unavailable for two hours starting at 11:00 p.m. tonight,” read the statement in part.

“This is due to an emergency system maintenance exercise aimed at improving service efficiency and enhancing customer experience.”