NAIROBI, Kenya, Nov 19 – Kenya Commercial Bank (KCB) Group will not increase its interest rates which were scheduled to come into effect early next month.
According to the bank, increment plans have been thwarted in response to improved market conditions.
The move has also been attributed to the continued ease in the country’s economic conditions which, according to KCB, has in turn given it room to pass the benefits of lower charges on loans to customers.
“Our assessment shows that the economic conditions have improved over the past few weeks, with a positive outlook going forward. The tough conditions which had elevated risks are now giving way, allowing us to pass the benefits to our customers,” said KCB Group Chief Executive Officer, Joshua Oigara.
The decision also follows a statement by Monetary Policy Committee (MPC) of the Central Bank which said on Tuesday that earlier turbulent conditions in the financial markets had subsided.
The MPC said notable improvement in liquidity conditions had been recorded in November, with the interbank and Treasury bill rates declining.
“We believe the biggest contribution we can make to the economy is ensuring households and businesses conveniently access affordable credit to spur entrepreneurship and economic expansion” Oigara added.