Connect with us

Hi, what are you looking for?

Capital Business
Capital Business


Co-op Bank complies with new law, caps interest rate at 14.5pc


NAIROBI, Kenya, Aug 26 – Cooperative Bank has become the first bank in Kenya to comply with the newly passed Bank (Amendment) Bill.

In a statement, Group Managing Director and CEO Gideon Muriuki has instructed that going forward, new credit facilities be at interest rates that do not exceed 14.5 percent per annum.

“In the foregoing and for business continuity, we advise that pending receipt of full guidelines from our regulator the Central Bank of Kenya particularly on the applicable Base Rate, all new credit facilities shall be at a rate not exceeding 14.5% p.a (being current Central Bank Rate of 10.5% + 4%),” read the memo sent to all branch managers and lending units

This comes two days after Banks’ umbrella body Kenya Bankers Association said that although they welcome the Bill, they do not feel that an arbitrary rate cap is the best way to go.

President Uhuru Kenyatta Wednesday passed the bill, which set the maximum interest rate chargeable for a credit facility at 4 percent above the Base Rate set and published by Central Bank of Kenya.

Read: Bank stocks reacts negatively to new interest rates law

Click to comment

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...


NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...


NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...


NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...


NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...