Commercial Bank of Africa has become the lowest lender in Kenya after capping its interest rates at 12.9 per cent.
This comes after the bank opted to use the Kenya Bankers Reference Rate (KBBR) as a means to determining its interest rates.
“The new rates will be based on the Kenyan Bank Reference Rate (KBRR) as advised from time to time by the Central Bank of Kenya,” CBA said in a statement.
In the same vein, CBA will pay a rate of 6.23 per cent on all deposits.
“As a result, CBA will lend at a maximum interest rate of 12.9 percent (KBRR +4) for all local currency credit facilities and pay a minimum interest rate of 6.23 percent (70% of the KBRR) on local currency interest bearing deposits.”
