Co-operative Bank has started issuing loans at a rate of 14.5 per cent.
This follows the signing into law of the Banking Amendment Bill 2015 which capped interest rates at 14.5 per cent.
According to a communication note sent by Co-operative Bank, all new credit facilities at Co-op Bank shall be at a rate not higher than 14.5 per cent.
“Pending full receipt of full guidelines from the Central bank of Kenya, particularly on the applicable base rate, all new credit facilities shall be at a rate not exceeding 14.5 per cent,” said a statement from Co-operative Bank signed by Co-op Bank CEO Gideon Muriuki.
