, NAIROBI, Kenya, Feb 12 – The Central Bank of Kenya (CBK) has published the average lending rates for various loan products by categories and maturities as well as the overall average weighted lending rates by the commercial banks over the last six months.
The move is in order to promote transparency in pricing of credit by the commercial banks.
Publication of average lending rates for commercial banks is expected to enable the public in making informed borrowing decisions.
The publication follows a meet between the CBK Governor Patrick Njoroge and banks chief executives over the need for lower interest rates in the economy, suggesting that the margins made by commercial banks were too high.
Njoroge had termed the high bank lending rates as troubling pointing out that it was unfortunate that large banks were hiking their rates despite them having liquidity.
READ: CBK boss summons bank bosses over rates
Overall, interest rates have risen from 16.1 percent in June 2015, to 16.8 percent in September and 18.3 percent in December 2015.
In the last quarter to December 2015, KCB Bank had the lowest rates for corporate loans over five years at 12.5 percent while Ecobank had the lowest on business and personal loans at 14.9 percent and 10.8 percent respectively for loans repayable over five years.
On personal loans repayable between one to five years Habib Bank had the lowest interest at 8.4 percent as at December 2015. While K- Rep bank was the most expensive with 25.7 percent interest.
The top tier banks interests for personal loans repayable between one to five years are as follows; Equity Bank at 18.1 percent, KCB at 19.5 percent, Co-operative bank at 16.6 percent, Barclays Bank of Kenya at 19.6 percent and Standard Chartered Bank at 19.5 percent.
CBK Governor Njoroge on Friday said they are working on strengthening supervision so as to perfect the safety and soundness of the financial sector.
Njoroge urged the financial services providers to continue to innovate so as to move the sector to the next level.