On March 19th, 2018, the central bank of Kenya (CBK) announced that it had cut its benchmark interest rate by 50 bps (0.5%) to 9.5 percent. CBK had initially lowered the benchmark interest rates back in September 2016 and this saw a rise in demand for loans. Following this announcement, CBK said it would closely monitor the impact of this cut along with changes to the global and domestic economy.
In response to this new effect by CBK, Equity Bank has announced that they have lowered their interest rates to 13.5% across all their loan facilities including micro-finance, mobile loans and credit cards. This new rate will apply to both existing and new loans as from 20th March 2018.
In addition, Equity Bank also announced that they have revised their minimum interest on saving deposits to 6.65%. This new interest rate on deposits affects Eazzy Save Account, Junior Member Account, Teen Member Account, Achievers Student Account, Jijenge Account, School Fees Account and Term Deposit Account.
In a statement, the Bank said that customers will now borrow at lower interest rates after the Central Bank of Kenya (CBK) lowered banks’ lending rate. Equity Bank reiterated that it remains committed to providing innovative, affordable and convenient financial solutions that will continue to expand customers’ opportunities.
Other banks that have lowered their interest rates include KCB Group, who made their announcement that all new loan facilities will attract an interest rate of not more than 13.5%.