CBA bank to offer cheapest loans

The Commercial Bank of Africa (CBA) has become the first bank to cap interest rates on loan on the Kenya Bank Reference Rate (KBRR).

In a statement signed by the Group’s Managing Director, Isaac Awuondo, the bank said it will lower interest rates on loans to a maximum of 12.9% from September 14, 2016.

“The new rates will apply to existing as well as new credit facilities and interest bearing deposits in Kenya shillings,” read the statement.

“We will communicate directly with each of our customers to advise how the changes impact their specific credit facilities and deposits with the bank. Our decision to effect the changes based on the KBRR has been informed by our commitment to fully comply with the letter and spirit of the law.”

This comes three weeks after President Uhuru Kenyatta signed the Banking Amendment Act 2016 capping interest rates on loans at a maximum of 14.5%.