Co-op Bank takes the lead in lowering interest rates to 14.5pc

The Co-op Bank has become the first lender to lower interest rates in line with the new law capping interest rates.

The bank has lowered interest rates for new loans to 14.5 percent effective immediately.

This follows President Uhuru Kenyatta’s decision on Wednesday to assent to the Banking Amendment Bill setting a ceiling to the amount banks can charge on loans.

Co-op Bank Chief Executive Officer Gideon Muriuki said the bank is yet to get the guidelines of how the law will be applied, and as such the new low interest regime will only be open to new customers.

“In the foregoing and for business continuity, we advise that pending receipt of full guidelines from our regulator the central bank of Kenya particularly on the applicable base rate, all new credit facilities shall be at a rate not exceeding 14.5% p.a.” Mr Muriuki said in a statement.