Co-op Bank stuns market with rare loan interest rate cut

Co-operative Bank headquarters, Nairobi. [David Njaaga, Standard]

Tier one lender Co-operative Bank of Kenya (Co-op Bank) has cut its loan interest rate by one percentage point, stunning the credit market as rivals race in the opposite direction to hike rates.

In the move that comes as huge relief for its credit-reliant borrowers amid a biting cash crunch, Co-op Bank said it had slashed personal loans and asset finance lending rates to "selected key borrowers"from 14 per cent to 13 per cent per annum with effect from April 1.