Commercial Bank of Africa becomes the first lender to cap interest’s rates using the Kenya Bankers Reference Rate at 12.9 per cent for new and existing loans.
“The new rates will be based on the Kenyan Bank Reference Rate (KBRR) as advised from time to time by the Central Bank of Kenya,” read a statement sent to Soko Directory News Desk.
KBRR currently stands at 8.9 per cent, “As a result, CBA will lend at a maximum interest rate of 12.9 percent (KBRR +4) for all local currency credit facilities and pay a minimum interest rate of 6.23 percent (70% of the KBRR) on local currency interest bearing deposits,” the statement from Isaac Awuondo, the Managing Director added.
Kenyan banks have agreed to cut their lending rates immediately following a directive from CBK after the National Assembly approved a bill limiting commercial lending rates at 4 percentage points above the CBK’s benchmark rate, and President assenting to it.