Donation Amount. Min £2

The Central Bank of Kenya, Nairobi. FILE PHOTO | DENNIS ONSONGO | NMG

In a notice published on Monday, the Nigerian lender said that it will adjust its lending rate to 14.63 percent up from the current 14.22 percent with effect from August 8. 

The CBK on June 26 raised the central bank rate (CBR) from 9.5 percent to 10.5 percent — the highest point in close to seven years. 

“Following the increase of the CBR on June 26, 2023 from 9.5 percent to 10.5 percent, we wish to advise our customers that we shall adjust our loan interest rates to reflect a revised Access Bank Base Rate of 14.63 plus a margin, based on the customer’s credit risk with effect from August 8, 2023,” said the lender.

The changes, the bank said, will apply to all existing and new Kenya shilling-denominated facilities.

Equity Bank was the first lender to review loan prices following CBK’s adjustment of the CBR, increasing its rate from 12.5 percent to 14.69 percent effective July 10, followed by NCBA, which raised the rate to 13 percent up from 12 percent with effect from August 7. 

Other lenders are expected to follow in the trend in coming days in a shift that will set up borrowers for high cost of credit at a time when economic struggles have been entrenched by among other factors introduction of new taxation regimes that have heavily raided workers’ pay slips.

CBK data shows that borrowers hit banks with an additional Sh82.9 billion in loan defaults in just four months of the year while the share of non-performing loans hit a 16-year high.

Lenders have been shifting to a risk-based pricing regime where different consumers are charged different interest rates based on the estimated risk that the consumers will fail to pay back their loans. By KABUI MWANGI, Business Daily

About IEA Media Ltd

Informer East Africa is a UK based diaspora Newspaper. It is a unique platform connecting East Africans at home and abroad through news dissemination. It is a forum to learn together, grow together and get entertained at the same time.

To advertise events or products, get in touch by info [at] informereastafrica [dot] com or call +447957636854.
If you have an issue or a story, get in touch with the editor through editor[at] informereastafrica [dot] com or call +447886544135.

We also accept donations from our supporters. Please click on "donate". Your donations will go along way in supporting the newspaper.

Get in touch

Our Offices

London, UK
+44 7886 544135
editor (@) informereastafrica.com
Slough, UK
+44 7957 636854
info (@) informereastafrica.com

Latest News

Police officer killed in Mandera during a clash with Somalia forces

Police officer kille...

One police officer was killed and another injured following a clash with Somalia's National Intellig...

Transforming agrifood systems in East and Southern Africa: Shaping the 2025–2030 Agenda

Transforming agrifoo...

CGIAR, through its Regional Integrated Initiatives (RIIs), has been working on scaling affordable, c...

UN judge 'exploited and abused' Ugandan woman she kept as enslaved while in UK

UN judge 'explo...

Judge Lydia Mugambe (photo credit: UNITED NATIONS) Mugambe was appointed to the UN's judicial roste...

Briton killed by vehicle in Ruto’s motorcade on Ngong Road identified

Briton killed by veh...

Authorities have identified the British national killed in a fatal road accident near Adams Arcade,...

For Advertisement

Big Reach

Informer East Africa is one platform for all people. It is a platform where you find so many professionals under one umbrella serving the African communities together.

Very Flexible

We exist to inform you, hear from you and connect you with what is happening around you. We do this professionally and timely as we endeavour to capture all that you should never miss. Informer East Africa is simply news for right now and the future.

Quality News

We only bring to you news that is verified, checked and follows strict journalistic guidelines and standards. We believe in 1. Objective coverage, 2. Impartiality and 3. Fair play.

Banner & Video Ads

A banner & video advertisement from our sponsors will show up every once in a while. It keeps us and our writers coffee replenished.