Co-operative Bank of Kenya has increased its lending rate from today to 14 per cent.
This will translate to a higher cost of loans to its customers.
In a notice, the Nairobi Securities Exchange (NSE)- listed lender announced the upward review of its base lending rate of Kenya Shilling denominated credit facilities.
“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 per cent p.a with effect from 7th November 2023,” stated Co-operative Bank.
In July, the Central Bank of Kenya (CBK) Monetary Policy Committee (MPC) increased the base lending rate to 10.5 per cent from the previous rate of 9.5 per cent in response to the country’s June inflation which had jumped to 8 per cent.
Co-operative Bank joins other NSE-listed lenders like Equity Bank Kenya and NCBA bank that have reviewed their lending rates upwards following CBK’s review of the benchmark lending rate.
Equity Bank interest rates in July jumped 14.69 per cent up from 12.5 per cent whereas NCBA Bank’s base lending rate for Shilling-denominated loans will increase to 14.5 per cent and that for dollar facilities will rise to 11 per cent effective tomorrow.