KCB cuts interest rates for existing loans, hours after CFC Stanbic

Hours after CfC Stanbic Bank took the first step to reduce interest rates for all loans – new and existing- market leader Kenya Commercial Bank has followed suit.

Read:CFC Stanbic slashes rates for old and new loans 

KCB says it will effect the revision of old loan rates from tomorrow in accordance with the new banking law that caps interest rates at 400 basis points above the Central Bank Rate.

“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 Joshua Oigara.

Read:  Co-op Bank caps loans at 14.5% as rout on bank stock persists 

KCB had announced rate cuts for loans over the weekend, emphasising then that the revision was only for new loans.

“Guidance on existing loans awaits direction from the CBK,” the bank said in a message to clients over the weekend.

KCB said it will work to ensure the rate-capping regime in the banking industry will not disrupt customers especially SME clients by addressing any negative impact that may arise from the controlled business environment.

Earlier in the morning, CfC Stanbic managing director Philip Odera said the rate cap is a “painful price” that banks were paying for not listening to customer grievances.

Source: The Star