Saccos cut interest rates to retain edge over Kenyan banks

Mwalimu Sacco members at its Nairobi office. PHOTO | FILE

Savings and Credit Co-operatives (Saccos) are reducing loan rates to retain their competitive edge after banks were forced to cut price of lending in line with the new interest capping law.

Their pricing, which has long kept interest rates at an average 12 per cent per annum (far below bank rates) has been their biggest selling point, earning them steady business.

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