|
Getting your Trinity Audio player ready...
|
Kingdom Bank, a subsidiary of Co-operative Bank of Kenya, has announced a reduction in its base lending rate from 15.5 percent to 15 percent per annum.
In a notice to its customers, the lender said the changes will take effect from November 1, 2025.
Kingdom Bank added that the effective lending rate for variable rate facilities will be the revised base rate of 15 percent plus a margin ranging between 0.5 percent and 5 percent, depending on individual customer credit profiles.
“This reduction underscores our commitment to making credit more affordable and empowering growth in key sectors especially MSMEs,” the notice reads in part.
The move comes in response to the Central Bank of Kenya’s (CBK) recent decision to lower the Central Bank Rate (CBR) by 25 basis points to 9.25 percent, its lowest level since January 2023, marking an unprecedented eighth consecutive cut since February 2024, when the benchmark stood at 13 percent.
CBK argued that the move will augment the previous policy actions aimed at stimulating lending by banks to the private sector and supporting economic activity, while ensuring inflationary expectations remain firmly anchored.
Co-op Bank extends Sh110 million financing to Seven Oaks School Ruiru
Kingdom Bank powering Kenyan MSMEs
Kingdom Bank is a subsidiary of the Co-operative Bank of Kenya since its acquisition in August 2020.
The lender is dedicated to fostering the financial growth of MSMEs in Kenya including youth and women-owned enterprises.
With a network of 24 branches across the country, the lender offers various services including personal and business loans, transaction accounts, Trade Finance, Insurance Premium Financing, Diaspora Banking, and Digital Banking, among others.
In 2024, it was ranked 3rd best Tier 3 bank for customer experience by the Kenya Bankers Association, based on a survey of over 37,000 customers.
