CfC Stanbic Bank will cut its lending rate to 17% from 19%, giving it one of the lowest lending rates of any bank in the country. The lender had previously lowered its rate to 19% from 22.5% with effect from October 15^th, 2012. At the time, the bank had also cut its mortgage rate to 18% from 19%.

Speaking to Pesatalk during a recent exchange, the bank's Corporate department confirmed that the drop will take effect on Saturday, the 15th of December, 2012.

The bank has experienced some growth from its cash flow activities. According to the company’s Half Year results, the bank received KES 2.5 billion from operating activities for the year ended June 2012, up 53% from KES 1.2 billion the previous year.

Despite the growth, operating activities were more profitable in December 2011 than when the bank’s 2012 Half Year Results were released. At the time, the bank made KES 3.7 billion. This means that for the first half of 2012, there was a 31% fall in profit from operating activities.

All things considered, the bank paid more income tax during the 2012 period than it did in 2011. CfC Stanbic will join the ranks of KCB, which also lowered its lending rate to 17% earlier this month. Their move follows a request from Finance Minister, Njeru Githae for banks to lower their lending rates even faster.