KCB Bank Kenya has raised its lending rates on new and existing loans. The bank has announced that the new base lending rates will come into effect on May 27 2024 for new loan facilities and July 1 2024 for the existing facilities.
“We wish to advise you that the Bank has reviewed its Base Lending Rate for Kenya Shillings denominated facilities to a variable base rate of 15.6 per cent per annum effective 2th May 2024 for new facilities and 1st July 2024 for existing facilities,” KCB Bank Kenya announced.
KCB Bank Kenya joins a list of commercial banks in Kenya that have hiked their interest rates on loans. Some commercial banks have raised their rates to as high as over 26 per cent.
These hikes in interest rates on loans follow the increase of the benchmark lending rate by the Central Bank of Kenya in December 2023 and February 2024. Among lenders who have already hiked their interest rates are Equity Bank and the NCBA Bank.
Equity Bank recently announced that it would henceforth charge 26.74 per cent on new loans taken by risky borrowers. The bank also adjusted its reference rate from 17.56 per cent to 18.24 per cent.
“Following the adjustment of the Central Bank Rate (CBR) from 10.5 to 12.5 per cent in December 2023 and from 12.5 per cent to 13 percent in February 2024, Equity Bank wishes to notify our customers and the general public, that the bank shall, effective February 20, 2024, adjust Equity Bank’s Reference rate (EBRR) from the current 17.56 to 18.24 percent,” Equity Bank announced in a notice message sent to its customers.
KCB overtakes Equity with Sh. 16.5bn net profit, Sh. 1.99 trillion assets in Q1
In April this year, the NCBA Bank Kenya also raised its lending rates on new and existing loans. The bank announced that the new base lending rates will come into effect immediately for new loan facilities.
“Kenya Shillings Base Lending Rate will increase from 16.50 per cent per annum to 17.50 per annum,” the NCBA Bank announced. The lender added that the United States Dollars Base Lending Rate will increase from 11.0 per cent per annum to 11.75 per cent рer annum.”
