Banks have cut the cost of credit to the lowest level in 15 years following the drop in the Central Bank of Kenya benchmark lending rate and a reduction in demand for new loans. The latest development has eased fears of a rise in the cost of credit after the removal of the interest rate cap last November.
Fresh data from the Central Bank of Kenya (CBK) shows that lending rates averaged 12.19 percent in February, the lowest since January 2005 when it stood at 12.12 percent during the reign of former governor Andrew Mullei.
