KCB sets 14.5pc Interest Rate on Existing Loans

    August 31, 2016   No comments

KCB boss ,Joshua Oigara,has finally announced that the bank will adopt a 14.5 per cent interest rate on all existing loans customers borrowed before the new banking law came in place.

Read also KCB Interest Rate on New Loans

Effective on 1st September 2016,all customers with existing loans with the bank will get the new calculated instalments available after visiting their branch credit managers.

Kcb capped existing loan interest rate at 14.5%
KCB CEO:Joshua Oigara


Read the full notice;

KCB Bank Kenya will adjust all existing loans to not more than 14.5% as part of the industry commitment to pass these benefits to customers even as we work closely with the Central Bank of Kenya (CBK) on the final regulation.
"Both new and existing loans will enjoy the 14.5% cap on rates and we urge customers to get in touch with their branches from tomorrow to review and amend their banking facilities documents to reflect the new interest rate regime," said the Group CEO and Managing Director, Mr. Joshua Oigara.  
This exercise of reviewing the current facilities will commence tomorrow  1st September, 2016 and we urge our customers to get in touch with their branch managers in case of any additional information as we re-price the terms of the existing loans said the Group CEO.
We have heard the voice of Kenyans and KCB Bank Kenya will ensure that customers are not disrupted in any way and as much as possible address any negative impact this may have to the broader economy such as the SME sector and the unbanked population. 
In addition, the Bank has also committed 5% of its loan book to support SMEs through the Kenya Bankers Association (KBA) Inuka programme for three years in which women and youth will enjoy 14.5% interest rate once their credit applications are successful. 
The Bank will continue to engage with the industry and the regulator and update on any changes that will be communicated.
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Mwabaya Katana

Posted By Mwabaya Katana

Mwabaya Katana is a Personal Finance online writer.He is the founder of 'Loans Kenya' Blog.

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