Finance Minister Njeru Githae has urged banks to lower the interest rates on loans to encourage Kenyans to access loans.

Speaking at the opening of Ecobank's Karen branch, Githae said the inflation rate is at 16% now and it would not hurt banks if they charged interest at rates of 16.5%.

"Inflation has dropped to 16% from 19% which is a significant 3 percentage point drop so it would not hurt  banks if they charged interest rates on loans at 16.5%," Said Githae. The minister who was confirmed to the post last week tacting capacity said treasury is encouraging more Kenyans to run bank accounts and tax files. In this way, he said more Kenyans would be able to easily access bank loans that would elevate their economic statuses.

Githae said an increase in the customer base by the banks would help them grow and banks should strive to give their clients good service and products on top of affordable loans. The minister noted that commercial bank deposits have increased from Shs 936 billion in 2008 to Shs 1.6 trillion last year, a growth he attributed to increase in number of account holders.

Ecobank opened its 24th Branch in Kenya on 3rd of March on its ambitious branch network growth program.