More banks reduce lending rates after CBK's key rate cut

• On Friday, Standard Chartered Bank, the fifth largest bank in the country according to the CBK, Commercial Bank of Africa -ranked eighth, and Diamond Trust Bank -ranked tenth, announced rate cuts to their base lending rates.
• Stanchart lowered its base rate from 21.5 per cent to 18.5 per cent.
• Commercial Bank of Africa (CBA) reduced its base rate by 3.5 percentage points to 19 per cent, while Diamond Trust Bank (DTB) also revised its base rate to 19 per cent from 22.5 per cent.

More commercial lenders have announced cuts in their base rates after the banking regulator reduced is benchmark rate last week.

On Friday, Standard Chartered Bank, the fifth largest bank in the country according to the CBK, Commercial Bank of Africa -ranked eighth, and Diamond Trust Bank -ranked tenth, announced rate cuts to their base lending rates.

The three banks join Barclays Bank, Ecobank, and Victoria Bank which lowered their base rates on Thursday, Housing Finance on Wednesday, and KCB and CfC Stanbic which announced changes to their base rates on Monday.

“We would like to inform our customers that our base rate will be adjusted from 21.5 per cent to 18.5 per cent with effect from October 1,” said Standard Chartered Bank in a statement.

Commercial Bank of Africa (CBA) reduced its base rate by 3.5 percentage points to 19 per cent, while Diamond Trust Bank (DTB) also revised its base rate to 19 per cent from 22.5 per cent. The new rates for both CBA and DTB will take effect on the same day, October 15.

The rate cuts come on the back of CBK’s announcement to cut its benchmark rate to 13 per cent from 16.5 per cent, the second cut this year that has seen the Central Bank Rate drop by 5 percentage points from 18 per cent in about two months.

Barclays Bank reduced its base rate by 1.5 percentage points to 19.5 per cent effective October 1, Ecobank by 3.5 percentage points to 21.5 per cent effective October 15, and Housing Finance to 18 per cent.

KCB’s base rate for normal loans will be 19 per cent from 22 per cent from October 1 and its mortgage will drop to 18 per cent rate from the previous 19 per cent while CfC Stanbic Bank's base rate will be 19 per cent with effect from October 15.