Cooperative bank reduces lending rates on loans and asset finance from 14 p.c to 13 p.c per annum

Cooperative Bank House in Nairobi. [Jonah Onyango, Standard]

Cooperative bank customers will now borrow with a lower interest rate effective 1^st April 2023.

The bank in a statement said it has made a significant move to reduce interest rates charged on personal loans and asset finance to selected key borrowers from 14 per cent per annum to 13 per cent per annum.

"This rather 'contrarian approach' bucks the industry trend where majority of the lenders are revising lending rates significantly upwards, especially in light of the recent upward adjustment of CBR by a huge 75 basis points to 9.5%," the statement read in part.

Co-op bank attributed the reduction to good repayment record.

"Co-op Bank's reduction of the lending rate is the bank's response to the good loan repayment record and reduced default risk that the target check-off scheme loans have recorded over time. It is a deserved reward for customers who have maintained a consistently good credit record," the statement read.

Corporate and institutional employees are among those who will benefit from the reduction rate.

"Among the main beneficiaries of the new lower rates include key corporate and institutional employers including the Kenya Defence Forces (KDF) and other armed services, the Kenya Police Service, the Teachers Service Commission (TSC), Government Ministries, the National Assembly, key state corporations such as Kenya Revenue Authority (KRA), KenGen among others." the statement read.