NAIROBI, Kenya, Nov 6 – The Co-operative Bank of Kenya, starting tomorrow, will increase its lending rate, thus pushing the cost of loans for customers even higher.
In an announcement to customers, the lender announced that the base lending rate on Kenya Shilling denominated credit facilities will rise to 14 percent.
Higher rates mean that the cost of financing a loan will increase, increasing lending costs for borrowers.
“Due to the prevailing macro-economic environment and increasing interest rates, we wish to advise you that our new Base Lending Rate for Kenya Shilling Credit Facilities is now 14% p.a. with effect from 7th November 2023,” the lender stated.
It comes after the Central Bank of Kenya (CBK) Monetary Policy Committee (MPC) in July increased its base lending rate from 9.5 percent to 10.5 percent to curb runaway inflation, which had risen to eight percent in June from 7.9 percent in May.
Other financial institutions whose rates have been increased include Equity Bank and NCBA Bank, among others.
