Kenya, Feb. 10 -- Co-operative Bank has officially announced a significant reduction in its base lending rate, cutting it by 2% from 16.5% to 14.5% per annum. This adjustment is effective immediately and aims to make borrowing more affordable for its customers.
The move is seen as a strategic effort to support micro, small, and medium enterprises (MSMEs) while stimulating economic growth.
The reduction comes shortly after the Central Bank of Kenya (CBK) reviewed its base rate, indicating a broader trend towards easing borrowing costs across the financial sector.
Clients have highlighted that Co-op Bank has taken the lead among Kenyan banks in reducing rates, with expectations that other banks might follow suit.
This action is perceived as a response to the CBK's recent monetary policy adjustments, fostering a more favourable environment for credit access.
Borrowers can now expect to benefit from lower interest rates on new loans or refinancing existing ones, potentially leading to increased investment in business expansion and personal projects.
The new rate structure includes a margin of 0% to 4% p.a. based on the credit profile of the borrower, offering tailored solutions to meet diverse financial needs.
Published by HT Digital Content Services with permission from Bana Kenya.