Co-op Bank To Retain lending Rates As Sidian Bank Hikes Its Interest Rates

Co-operative Bank of Kenya has said that it will not increase the interest rates on the existing loans, the management has said.

This comes days after President Uhuru Kenyatta signe into law a bill scrapping the interest rate caps, a move set to make loans expensive.

In a statement  Group Managing Director and CEO Gideon Muriuki stated that the institution would retain existing interest rates.

“We are pleased to advise all our customers that Co-op Bank is meanwhile retaining existing interest rates for all our outstanding loans based on existing money market conditions,” he stated.

Read: Co-op Bank, CFAO Kenya Launch Financing Scheme For Agri-Machinery and Equipment

On the other hand, the Sidian bank has hiked it’s interest rates, pursuant to signing into law the 2019 Financial Bill.

In the new rates, corporate loans will cost an interest of 16 percent, consumer 19 percent, Micro/unsecured 19 percent, credit cards 19 percent same as mobile loans.

According to the State House, the change is expected to enhance access to credit to the private sector.

“Repeal of the Banking Act is expected to enhance access to credit by the private sector, especially the micro, small and medium enterprises (MSMEs), as well as cut out exploitative shylocks and other unregulated lenders,” a brief from State House said.

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