KCB, CFC Stanbic adopt new banking law, lower interest rates to 14.5 per cent

NAIROBI, KENYA: Kenya Commercial Bank Group on Wednesday announced a cut in interest rates for both new and existing loans following new law recently signed by President Uhuru Kenyatta.

The bank joined CFC Stanbic who announced similar move to adjust all existing loans to not more than 14.5 per cent.

“Both new and existing loans will enjoy the 14.5 percent cap on rates and we urge customers to get in touch with their branches from tomorrow to review and amend their banking facilities documents to reflect the new interest rate regime,” said the Group CEO and Managing Director, Mr. Joshua Oigara.  

This exercise of reviewing the current facilities will commence September 1 and we urge our customers to get in touch with their branch managers in case of any additional information as we re-price the terms of the existing loans said the Group CEO.

He said the bank heard the voice of Kenyans and will ensure that customers are not disrupted in any way and as much as possible address any negative impact this may have to the broader economy such as the SME sector and the unbanked population. 

In addition, the Bank has also committed 5 per cent of its loan book to support SMEs through the Kenya Bankers Association (KBA) Inuka programme for three years in which women and youth will enjoy 14.5 per cent interest rate once their credit applications are successful.