The Commercial Bank of Africa, CBA will revise their lending and deposit rates on September 14th 2016.
Group managing director Isaac Awuondo said that the new rates will be based on the Kenya Bank Reference Rate as advised by the Central Bank of Kenya.
The Kenyan Bank Reference Rate currently stands at 8.9%.
"As a result CBA will lend at a maximum interest rate of 12.9% (KBRR +4%) for all local currency credit facilities and pay a minimum interest rate of 6.23% (70% of the KBRR) on local currency interest bearing deposits.
Awuondo added that the new rates will apply to existing as well as new creditors facilities and interest bearing deposits in Kenya shillings.
President Uhuru Kenyatta to the Banking Amendment Act 2015 in August 2016.
The law will cap commercial interest rates at 400 basis points above the central bank’s benchmark rate, which currently stands at 10.5 per cent.
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