NAIROBI, Kenya, Nov 28 – I&M Bank has announced a reduction in its lending interest rates by a total of 0.75%, aimed at increasing access to credit for individuals and businesses across Kenya.
The move comes in response to the Central Bank of Kenya’s (CBK) recent cut in the Central Bank Rate (CBR).
The first reduction, which took place today, 28th November 2024, slashes rates by 0.25%.
The second phase of the rate reduction, a further 0.5%, will take effect on 23rd December 2024.
The total 0.75% decrease, implemented in two phases over two months, is expected to provide financial relief to both businesses and individual borrowers, making credit more affordable.
Gul Khan, CEO of I&M Bank Kenya, emphasized that this move is in line with the bank’s customer-centric approach and its commitment to enhancing access to financial services.
“At I&M Bank, we strive to prioritize our customers’ needs, and this interest rate reduction will lower operational costs for our clients in the Corporate, SME, and Personal Banking segments,” Khan stated.
“It is a step forward in helping them achieve their growth ambitions.”
According to Khan, this strategic decision by I&M Bank is expected to positively impact a wide range of customers, including businesses that rely on credit to scale their operations, and individuals seeking affordable loans for personal projects or needs.
The move comes on the back of a directive by the Central Bank of Kenya (CBK) requiring lenders to slash interest rates to spur investment and encourage borrowing.
Following the recent Monetary Policy Committee (MPC) meeting, CBK Governor Kamau Thugge emphasized that affordable loans are essential for private investors seeking to fund various ventures.
Thugge also pointed to a significant slowdown in credit growth, as high borrowing costs deter businesses and individuals from accessing loans.
