- They said the customer's loans priced at 14.63 per cent plus a margin will be based on the customer's credit risk.
- On July 6, Equity Bank became the first lender to raise its loan interests so as to reflect the new CBK rates.
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Access Bank has announced an increase in loan prices in line with the new rates as announced by the Central Bank of Kenya.
The changes come after CBK on June 26 raised the Central Bank Rate (CBR) from 9.5 per cent to 10.5 per cent.
In a notice on Monday, the bank said they will adjust the interest rates to reflect a revised Access Bank Base Rate of 14.63 per cent.
The customer's loans priced at 14.63 per cent, plus a margin will however be based on the customer's credit risk.
“Following the increase of the Central Bank Rate on June 26, from 9.5 per cent to 10.5 per cent, we wish to advise our customers that we shall adjust our loan interest rates to reflect a revised Access Bank Base Rate of 14.63 per cent plus a margin based on the customer’s credit risk,” they said.
They also noted that the new rates will be effective from August 8 and will apply to all existing and new Kenya Shilling-denominated credit facilities.
On July 6, Equity Bank became the first lender to raise its loan interests to reflect the new CBK rates.
The bank announced that the new rates will be effective to their customers who will now start paying more to service their loans from July 10.
They notified that they will adjust their lending rates to 14.69 per cent up from 12.5 per cent.
“Following the adjustment of CBR on June 26, 2023, from 9.5 per cent to 10.5 per cent, we wish to inform our customers that we shall adjust our loan interest rates to reflect a revised Equity Bank Reference Rate (EBRR) of 14.69 per cent plus a margin, based on the customer’s credit risk with effect from July 10 2023,” Equity said in a notice.
The Central Bank of Kenya on June 26 raised its key lending rate by one percentage point to 10.5 per cent from 9.5 per cent.
The Monetary Policy Committee (MPC) noted that sustained inflationary pressures, increased risks to the inflation outlook, elevated global risks and their potential impact on the domestic economy call for tightening of the monetary policy.
The rise was driven by fuel, food which increased to 10.2 per cent, and non-food non-fuel (NFNF) prices.
“In view of these developments, the MPC decided to raise the Central Bank Rate (CBR) from 9.50 per cent to 10.5 per cent in order to further anchor inflation expectations,” CBK said.