Diamond Trust Bank (DTB) has adjusted its interest rates for both new and old customers in line with the new law beginning September 1.
The bank said Friday in a statement it will also review its operations to align applicable interest-earning deposit accounts to the new minimum rate as stated in the Banking (Amendment) Act 2016.
On Thursday, Central Bank of Kenya ordered bank executives to review their costs of loans or risk going to jail for one year or banks be fined Sh1 million for non-adherence to the new law which was signed by President Uhuru Kenyatta last week.
“DTB prides itself as a customer-centric financial institution. We hope this legislation will encourage more Kenyans not only to take advantage of the affordable credit facilities but also improve their savings culture and livelihoods,” said Nasim Devji, Group CEO and managing director.
DTB pledged to work closely with CBK to ensure compliance with the legislation.
The bank has been at the forefront of SME lending for over 70 years and recently committed over Sh2 billion to lend to SMEs under the Kenya Bankers Association (KBA) Inuka Enterprise programme.
The funds, the bank noted, will also benefit women and youth owned SMEs who will not only get funding but also access entrepreneurial training.
“We hope that through this initiative, DTB will play a key role in promoting business growth and job creation as well as making it easier for viable businesses to access capital,” said Nasim Devji.