The Co-operative Bank has announced it has slashed its base lending rate by 2 percent.
In a statement on Monday, February 10, the bank said it had lowered its base lending rate from 16.5 percent per annum to 14.5 percent per annum.
Co-operative bank noted that the new base lending rate will take effect immediately.
“Co-op Bank Group is pleased to announce a significant 2% reduction in our Base Lending Rate from 16.5% p.a. to 14.5% p.a.
“This reduction takes effect immediately. The effective lending rate will be the Base Lending Rate of 14.5% p.a. plus a margin of between 0% p.a. to 4% p.a. based on the individual customer’s credit profile,” read part of the statement.
Read More
The bank pointed out that its move to reduce the base lending rate is aimed at stimulating credit growth in key sectors of the economy.
“The reduction in lending rates is intended to stimulate credit growth to key sectors of the economy notably the MSMEs that are a critical engine to drive and sustain economic growth,” Co-operative Bank added.
The move by the Co-operative bank comes days after the Central Bank of Kenya (CBK) cut the base lending rate to 10.75 percent and reduced the cash holdings requirement for banks to 3.25 percent in order to boost lending to the private sector.
The CBK’s decision is expected to free up Ksh 57 billion in additional liquidity which banks can lend to the private sector.
