Diamond Trust Bank (DTB) Kenya has reduced its base lending rate for all Kenya shilling-denominated credit facilities, cutting it by 20 basis points from 14.41% to 14.21%, effective July 1, 2025. This latest adjustment reflects DTB’s ongoing response to the Central Bank of Kenya’s (CBK) monetary policy direction and aims to support borrowers in a tough economic environment.
The July rate cut marks the bank’s fifth adjustment this year, continuing a downward trend in borrowing costs for both individuals and businesses. DTB started 2025 with a base rate of 16.92% but has since implemented a series of cuts: 0.50 percentage points in January, 0.37 in February, 0.35 in April/May, 0.55 in June, and now 0.20 in July. This brings the total reduction to 1.97 percentage points in just six months.
The move follows the CBK’s sixth consecutive benchmark rate cut in June, which lowered the policy rate to 9.75%. The CBK’s ongoing monetary easing strategy is aimed at making loans cheaper, encouraging borrowing, and stimulating economic activity amid high inflation, currency pressure, and weak credit uptake.
DTB noted that the revised rate will apply to both new and existing loans, providing immediate relief to its borrowers. Customers with shilling-denominated credit facilities will see lower monthly instalments and reduced overall interest expenses. The bank said the rate change demonstrates its commitment to supporting clients with “competitive and responsive pricing.”
Here’s a breakdown of DTB’s base lending rate changes in 2025:
| Date | Rate Cut | Cumulative Change | New Base Rate |
|---|---|---|---|
| Jan 1 | 0.50 ppt | –0.50 ppt | 16.92% |
| Feb 15 | 0.37 ppt | –0.87 ppt | 16.55% |
| Apr 15 / May 1 | 0.35 ppt | –1.22 ppt | 16.20% |
| Jun 1 | 0.55 ppt | –1.77 ppt | 15.65% |
| Jul 1 | 0.20 ppt | –1.97 ppt | 14.21% |
DTB is not alone in slashing lending rates this year. Over 20 major commercial banks in Kenya, including KCB Group, Equity Bank, and Co-operative Bank, have adjusted their base lending rates in 2025. This trend reflects wider industry alignment with CBK’s monetary policy and a collective effort to make credit more affordable.
Industry analysts say the lending rate cuts could boost demand for personal loans, mortgages, and business financing. Easier access to credit is expected to help small businesses expand, enable more households to meet financial needs, and contribute to economic growth.
The broader economic outlook remains uncertain, but monetary policy has become a critical tool for managing the country’s financial stability. With inflation showing signs of slowing and the Kenyan shilling gaining some strength, CBK has room to continue easing.
However, experts also caution that the success of monetary easing depends on other factors, including fiscal discipline, consumer confidence, and structural reforms in the banking sector. While lower interest rates provide relief to borrowers, lenders must also carefully manage risk and loan performance.
The CBK’s next Monetary Policy Committee (MPC) meeting is scheduled for August 12, 2025, and market watchers expect further signals on whether the trend of accommodative policy will continue. If CBK maintains its dovish stance, more rate cuts by banks may follow in the second half of the year.
For now, DTB customers can expect some breathing space in their loan repayments, a sign that monetary policy adjustments are beginning to flow through to the real economy.
