Relief for borrowers as KCB, CfC banks cut cost of old loans

Kenya’s biggest bank by assets KCB and CfC Stanbic Wednesday announced that they had lowered interest rates for existing borrowers in line with the new law capping the cost of loans, piling pressure on their peers to follow suit.

The decision marks a departure from the industry lobby Kenya Bankers Association’s (KBA) earlier position that existing loans would continue to be serviced at pre-interest rate cap levels averaging 18 per cent till the Central Bank of Kenya issues guidelines on the new law.