KCB and CFC Stanbic bring down their interest rates

31 Aug 2016 | by
KCB and CFC Stanbic bring down their interest rates

Two banks on Wednesday brought down their interest rates on existing and new loans to 14.5% in compliance with the new law signed by President Uhuru Kenyatta last week.

The first to lower their interest rates was the CFC Stanbic which through its Managing Director Philip Odera said it had lowered the interest rates.
It was quickly followed by the country's largest bank, Kenya Commercial Bank which said it was complying with the new law.
In a statement, the CEO of the bank Mr Joshua Oigara asked their clients to go to their respective branches with effect from Thursday, September 1, 2016 to have their loans calculated afresh.
Last weekend, KCB had issued a statement saying only new loans would attract the new interest rates but the bank seems to have reviewed its position given the stand taken by CFC Stanbic.
In lowering interest rates, Odera said the rate cap is a painful price than banks were paying for not listening to their clients.
With KCB having set the trend, other banks will be closely watched to see whether they will take a cue and follow suit.

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