NAIROBI, Kenya, Mar 8 – Family Bank has increased the cost of borrowing loans after increasing the interest rate to 17.55 percent.
The hike comes after the Central Bank of Kenya (CBK) earlier increased its base lending rate from 12.5 percent to 13 percent last month.
CBK’s move to increase the rate was meant to contain inflation as well as stabilize the Kenyan shilling, whose value was declining against major global currencies.
Following the rise, existing and prospective loan borrowers will have to dig deeper into their pockets to service monthly loans.
“Dear Customer, following the adjustment of the Central Bank Rate (CBR) from 12.5% to 13% on 6th February 2024, we notify you of a revised Family Bank Base Lending Rate of 17.55%, plus a margin based on credit risk, effective from 8th March 2024,” read the bank’s message to its customers.
