Saturday, September 30, 2023
Star Today Logo
  • Home
  • News
  • Business
  • Politics
  • Investigation
  • Health
  • Opinion
No Result
View All Result
Star Today Logo
Home Business

Cost of loans falls to lowest rate since 2005

April 15, 2020
in Business, News
Reading Time: 1 min read
Cost of loans falls to lowest rate since 2005
0
SHARES
Share on FacebookShare on TwitterShare on Whatsapp

Readers' Choice

Co-op Bank overtakes KCB as 2nd most valuable lender at NSE

Governors failed to spend Sh62.5bn set aside for development – report

Banks have cut the cost of credit to the lowest level in 15 years following the drop in the Central Bank of Kenya benchmark lending rate and a reduction in demand for new loans. The latest development has eased fears of a rise in the cost of credit after the removal of the interest rate cap last November.

Fresh data from the Central Bank of Kenya (CBK) shows that lending rates averaged 12.19 percent in February, the lowest since January 2005 when it stood at 12.12 percent during the reign of former governor Andrew Mullei.

Kenya in November scrapped the cap on commercial lending rates, which had been blamed for stalling lending to small businesses and individuals. The removal of the legal cap led to fears of a likely to return to the era of high lending rates, which had at one point hit a high of up to 25 percent.

NCBA managing director John Gachora told the Business Daily that the lower cost of loans was in line with a fall in the central bank benchmark lending rate as well as the sluggish economic growth that has suppressed appetite for new loans.

“Banks have been clear that they were not asking for rate cap removal in order to raise rates. We said we would discipline ourselves and the data speaks to that,” said Mr Gachora.

Tags: Bank loansCentral Bank of KenyaCoronavirus
ShareTweetSend
Previous Post

Coronavirus: US to halt funding to WHO, says Trump

Next Post

Co-op Bank set to disburse State funds meant for vulnerable groups

Related Posts

HomeBoyz shares go live at NSE

Co-op Bank overtakes KCB as 2nd most valuable lender at NSE

September 30, 2023
Governors failed to spend Sh62.5bn set aside for development – report

Governors failed to spend Sh62.5bn set aside for development – report

September 27, 2023
Next Post
Co-op Bank stock projected to hit target price of Sh21.40 in near future

Co-op Bank set to disburse State funds meant for vulnerable groups

Leave a Reply

Your email address will not be published. Required fields are marked *

Continue Reading

HomeBoyz shares go live at NSE

Co-op Bank overtakes KCB as 2nd most valuable lender at NSE

by Star Today
September 30, 2023

Co-operative Bank of Kenya has overtaken KCB Group to become the second most valuable lender on the Nairobi Securities Exchange...

Governors failed to spend Sh62.5bn set aside for development – report

Governors failed to spend Sh62.5bn set aside for development – report

by Star Today
September 27, 2023

The latest report by the Controller of Budget has depicted how county governments have failed to spend billions of shillings...

Co-op Bank receives Sh14.15bn to lend to MSMEs

Co-op Bank named SME Financier of the Year in Africa

by Star Today
September 20, 2023

The Co-operative Bank of Kenya has been named SME Financier of the Year in Africa by the International Finance Corporation at...

Mason dies after falling from 10th floor in Pangani

Two foreigners lose Sh132m in a Mombasa Hotel

by Star Today
September 20, 2023

Police in Mombasa are investigating an incident where electronics belonging to two foreigners went missing in a hotel room where...

Recent News

  • Co-op Bank overtakes KCB as 2nd most valuable lender at NSE
  • Governors failed to spend Sh62.5bn set aside for development – report
  • Co-op Bank named SME Financier of the Year in Africa

Category

  • Business
  • Health
  • Investigation
  • News
  • Opinion
  • Politics
  • Star Today

© 2023

No Result
View All Result
  • Home
  • News
  • Business
  • Politics
  • Investigation
  • Health
  • Opinion

© 2023