CFC Stanbic Bank has become the first lender to cut rates for new and existing loans.
Through a press briefing this morning (read August 31), the bank’s chief executive officer Philip Odero revealed that CFC has answered the cry of borrowers in cutting rates for both old and new loans.
In adjusting its lending rates to the new law, it means the bank will charge an interest of not more than 14.5 per cent on all loans, the Star reports.
Co-operative Bank became the first lender to adjust lending rates downwards, in line with the new law passed last week capping interest rates at 400 basis points above the prevailing Central Bank Rate.
Majority of banks soon followed announcing that new loans will be charged an interest of 14.5 per cent. They are however waiting for Central Bank to give directive on existing loans.
Other than Co-op and CFC other lenders that reduced lending rates as per the new law include Kenya Commercial Bank, Standard Chartered and Barclays.
Via the Star