Central Bank of Kenya's move to cap Interest rates is set to benefit Kenyans seeking loans from local lenders.
Equity Bank (K) Ltd has announced cheaper loans for all its customers effective Monday, November 18, after lowering the interest rates on all credit facilities.
In a statement on Monday, November 18, the bank disclosed that the reduction was due to the decision by the Central Bank Kenya’s Monetary Policy Committee (MPC) to cut the Central Bank Rate (CBR).
“Equity Bank (K) Ltd is pleased to announce a reduction in interest rates on all new and existing Kenya shilling-denominated credit facilities, following the recent decision by the Central Bank Kenya’s Monetary Policy Committee (MPC) to cut the Central Bank Rate (CBR) from 12.75% to 12.0%,” read part of the statement.
The bank noted that the reduction, which will be effective beginning November 18, reflects the bank’s commitment to making credit more affordable to customers.
“The reduction, effective 18th November 2024, reflects Equity Bank’s proactive commitment to making credit more affordable and accessible to a wider range of customers, furthering financial inclusion and stimulating economic activity across Kenya.
“The reduced interest rate on all new and existing Kenya Shilling-denominated credit facilities will comprise the revised Equity Bank Reference Rate (EBRR) of 17.39% plus a margin, currently capped at a maximum of 8.5% per annum."
" This reduction applies to a wide range of credit products reflecting the bank’s commitment to fostering financial inclusion and supporting customers across diverse sectors,” Equity Bank explained.
According to Equity Bank CEO James Mwangi, the reduction will provide relief to customers with existing loans and those seeking new credit facilities.
“The reduction in our Equity Bank Reference Rate (EBRR) from 17.83% to 17.39% is in response to the MPC’s decision, which aims to maintain economic stability amid improving inflation trends and favourable economic indicators.
“With this reduction, all new and existing customers with Kenya Shilling-denominated loans will benefit from lower borrowing costs, providing immediate relief and supporting their financial aspirations,” Mwangi remarked.
The bank maintained that its proactive rate adjustment aligns with policy goals, thus allowing customers to benefit from a stable economic environment.
In related news, Equity Bank Kenya has addressed a fire outbreak at one of its branches on Monday, November 18.
According to the bank, a fire broke out at its Kapenguria Branch, West Pokot County on Monday morning and smoke was detected by the employees.
However, the Kapenguria Fire Department responded to the emergency.
Consequently, customers from the bank have been advised to seek services from other equity agents or other branches.
“We wish to notify you that smoke was detected at our Kapenguria Branch this morning. The Kapenguria fire department were notified and responded promptly.
“As we work towards normalizing operations, we advise our Kapenguria Branch customers to access banking services at any Equity agent location near them or at our Kitale branch.”