NAIROBI, Kenya, Aug 31 – CFC Stanbic Bank has announced it will cut interest rates for existing loans, becoming the first bank to backdate the implementation of the new law signed by President Uhuru Kenyatta last week.
“In compliance with the new law we have adopted the new lending rate of Base Rate +400 basis points currently at 14.5pc per annum on all new and existing loans facilities,” said Philip Odera, CEO CFC Stanbic Kenya.
He, however, adds that the current existing customers will have to wait a few weeks for the bank to adjust their systems and that each customer will be contacted to be advised on the revised rates depending on the loan facility.
On deposits, the lender says it will raise its current rates on savings products from 7 pc to 7.35pc in line with the new law.
Barclays Bank of Kenya and KCB Group announced they had revised rates on new facilities after Co-operative Bank complied with the law days after the President signed the bill.
The financial institutions said they are waiting for direction from the Central Bank on existing loans before extending the rates to customers.