KCB will adjust all existing loans to not more than 14.5%.
The bank says this is as part of the industry commitment to pass these benefits to customers even as it works with the Central Bank of Kenya (CBK) on the final regulation.
“Both new and existing loans will enjoy the 14.5% cap on rates and we urge customers to get in touch with their branches from tomorrow to review and amend their banking facilities documents to reflect the new interest rate regime,” said the Group CEO and Managing Director, Joshua Oigara.
This exercise of reviewing the current facilities will commence tomorrow 1 September, 2016 and we urge our customers to get in touch with their branch managers in case of any additional information as we re-price the terms of the existing loans said the Group CEO.
We have heard the voice of Kenyans and KCB Bank Kenya will ensure that customers are not disrupted in any way and as much as possible address any negative impact this may have to the broader economy such as the SME sector and the unbanked population.
In addition, the bank has also committed 5% of its loan book to support SMEs through the Kenya Bankers Association (KBA) Inuka programme for three years in which women and youth will enjoy 14.5% interest rate once their credit applications are successful.
The bank will continue to engage with the industry and the regulator and update on any changes that will be communicated.