KCB Shelves Interest Rate Increase

KCB Group has resolved not to effect an earlier planned interest rates raise in Kenya in response to improved market conditions.

The decision to halt the increase— which was to be effected on December 4, 2015— is as a result of a continued easing in the country’s economic conditions which has in turn given the Bank room to pass the benefits of lower charges on loans to customers.

On Tuesday, the Monetary Policy Committee (MPC) of the Central Bank said that earlier turbulent conditions in the financial markets have now abated. The MPC said notable improvement in liquidity conditions has been recorded in November, with the interbank and Treasury bill rates declining.

“Our assessment shows that the economic conditions have improved over the past few weeks, with a positive outlook going forward. The tough conditions which had elevated risks are now giving way, allowing us to pass the benefits to our customers,” said KCB Group Chief Executive Officer, Joshua Oigara.

“We believe the biggest contribution we can make to the economy is ensuring households and businesses conveniently access affordable credit to spur entrepreneurship and economic expansion” said Mr Oigara.