Kenya Commercial Bank Group have heeded Central Bank’s calls not to increase its lending rates and therefore halted plans to increase rates which was scheduled to take effect as from December.The move comes a few days after Equity Bank also did the same in regards to improved market conditions.KCB’s decision also follows a statement by Monetary Policy Committee of the Central Bank which said on Tuesday that earlier turbulent conditions in the financial markets had softened.The MPC said notable improvement in liquidity conditions had been recorded in November, with the interbank and Treasury bill rates declining. CBK’s 182-, 364-day T-bill yields fall Further
KCB Group said that the move was due to continued ease in the country’s economic conditions which, according to them, has in turn given it room to pass the benefits of lower charges on loans to customers.
“Our assessment shows that the economic conditions have improved over the past few weeks, with a positive outlook going forward. The tough conditions which had elevated risks are now giving way, allowing us to pass the benefits to our customers,we believe the biggest contribution we can make to the economy is ensuring households and businesses conveniently access affordable credit to spur entrepreneurship and economic expansion” ” said KCB CEO,Mr Joshua Oigara.
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