Kenya Banker’s Association (KBA) has promised that commercial banks will start adjusting their base lending rates by the end of this month. This will be in conformity to the recently lowered bench rate by the central bank from 18 % to 16.5%. Speaking during a re-branding ceremony on Wednesday, the association’s chairman, Mr. Richard Etemesi said that customers should expect an adjustment between the end of this month and the beginning of August.
So far, some banks have announced their plans to reduce lending rates by next month. The Bank of Baroda and Barclays Bank have promised to cut the lending rate each by 1.5% come August. CFC Bank has also announced its plans to lower its base rate to 22.5 % from 24% from August 11.
KBA, which is the industry’s umbrella body, turns 50 this year and part of its re-branding involves embracing a new set of values, a website with more information to the public on banking activities, and a new logo. During the re-branding ceremony held on 11th of July, Richard Etemesi promised that they will do more than just taking care of the interests of member banks. The association currently has a membership of 43 banks.
.