KCB Bank Kenya Lowers Base Lending Rate To 14.6% Amid Strong Financial Growth
KCB Bank Kenya Lowers Base Lending Rate To 14.6% Amid Strong Financial Growth
KCB Bank Kenya wishes has reduced its base lending rate from 15.6% to 14.6% per annum.
This reduction takes effect from February 10, 2025 and is set to benefit borrowers by making credit more affordable.
This comes in view of the recent adjustments of the Central Bank Rate (CBR) and Cash Reserve Ratio (CRR) by the Central Bank of Kenya,
KCB Bank Kenya Lowers Base Lending Rate To 14.6% Amid Strong Financial Growth
In the latest benchmark rate review, CBK Governor Dr. Kamau Thugge announced that the regulator will start penalizing institutions that fail to accord borrowers cheaper loans.
“Under the amendment to the Banking Act recently enacted by Parliament, any bank that has not passed on the benefits of reduced costs of funds to reduce lending rates will be penalized in accordance with the law,” noted Dr. Thugge.
With the rising cost of living and fluctuating interest rates, this reduction comes as welcome relief to many Kenyans struggling with loan repayments.
The bank has assured its customers that the adjustment will be applied fairly, with the final lending rate being based on a customer-specific margin in line with the approved Risk-Based Credit Pricing Model.
This interest rate cut comes on the back of a highly successful 2024 financial year for KCB Bank. The lender recorded impressive profits, with net earnings surpassing Ksh 40 billion in the last quarter of the year.
This remarkable performance was driven by a combination of efficient cost management, improved loan recovery mechanisms, and increased digital banking transactions.
Central Bank has been pushing commercial banks to lower their lending rates in line with the progressive benchmark rate cuts by the apex bank since late last year.
