KCB caps interest rate at 14.5pc as banks come to terms with new law

KCB group CEO and Managing Director Mr, Joshua Oigara KCB group half year pretax profits on 4th August 2016. PHOTO: WILBERFORCE OKWIRI/STANDARD

NAIROBI: Kenya Commercial Bank (KCB) has become the second lender to reduce its cost of loans to 14.5 per cent.

Its decision, which comes after Cooperative Bank became the first to do so last Friday, now puts more pressure on other major lenders in the country to comply with the Bill President Uhuru Kenyatta signed into law that caps commercial banks’ lending rates to four percentage points above the Central Bank Rate (CBR), which is currently at 10.5 per cent.