Access Bank Kenya has raised its loan interest rate to 16.63 per cent effective 17th December 2023.
The new rate will apply to all existing and new Kenya Shilling-denominated credit facilities.
The lender has attributed the move to an increase in short-term rates and the current macroeconomic environment.
“Considering this, we wish to advise our customers that we shall adjust our loan interest rates to reflect a revised Access Bank Base Rate of 16.63% p.a. plus a margin, based on the customer’s credit risk with effect from 17th December 2023,” stated Access Bank Kenya in a notice.
“We have endeavored to cushion customers by maintaining the prevailing interest rates despite the challenges highlighted. However, the foregoing market conditions having persisted longer than anticipated, and the Bank has had to review the Risk-Based Pricing to align to the prevailing economic conditions,” added Access Bank Kenya.
Read: Co-operative Bank Increases Lending Rate To 14Pc
Access Bank joins other lenders that have recently increased their base lending rate, which translates to a higher cost of loans for their customers.
Co-operative Bank of Kenya, Equity Bank Kenya and NCBA bank reviewed their interest rates upwards to 14 per cent, 12.5 per cent and 14.5 per cent respectively.
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.