Cheap Loans As MPC Further Lowers CBR To 9 Percent

MPC Press Release

Monetary Policy Team chaired  by CBK Governor,Dr. Patrick Njoroge on Monday 30th July, came to a favourable conclusion to borrowers by taking the CBR further down from 9.5% to 9%.

Monetary Policy Committee (MPC) had been taking the CBR down since the rate capping law came into force.CBR was 10.5 % in end 2016 when rate cap came in. MPC dropped it to 10% ,then 9.5% and now down to  9% in July 2018.

Despite forces to scrap rate capping, MPC placed CBR at 9% making loans cheap .Banks will now be forced to charge a maximum of 4% above CBR thus 13% will be the new maximum for all CBK regulated lenders.

Njoroge and the team attributed the move as a result of increased optimism on growth ,strong pickup in economic activity, favourable weather among other favourable factors.

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