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Elijah Ntongai, a journalist at TUKO.co.ke, has more than three years of financial, business, and technology research expertise, providing insights into Kenyan and global trends.
Equity Bank Kenya has announced a reduction in interest rates charged on loans.
Speaking in August, when the half-year financial results for the financial year 2024 were released, Equity Group CEO James Mwangi said the bank would reduce interest rates.
At the time, Mwangi explained that the bank would reduce the interest rates by almost double the reduction by the Central Bank of Kenya.
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"Our customers and members should anticipate a reduction in their interest rates. This is informed by the fact that on the 6th of August, the central bank adjusted its rate from 13% to 12.75%, a reduction of 0.25%...Our customers can look for a reduction almost double the reduction of the central bank of approximately 0.4%. That brings in more and greater affordability," Mwangi said.
In a statement released on September 8, the lender announced the reduction of the reference rate from 18.24% to 17.83%.
"Following the adjustment of the Central Bank Rate (CBR) on 6th August 2024 from 13% to 12.75%, we wish to inform our customers and the general public that we have reduced Equity Bank's Reference Rate (EBRR) from the current 18.24% to 17.83% effective 9th September 2024" the statement read in part.
Therefore, Equity Bank customers will access loans at an interest rate of 17.83% plus a margin not exceeding 8.5% per year.
The bank noted that the new interest rates will apply to all new Kenya shilling-denominated credit facilities.
Earlier, TUKO.co.ke reported that a recent CBK report revealed stark differences in interest rates across Kenyan banks amid rising non-performing loans.
Experts have blamed high government borrowing from the local market for the rising interest rates as banks struggle with non-performing loans.
Citibank, Premier Bank, and Ecobank lead in low-interest loans, while big banks lag in affordability.
Proofreading by Otukho Jackson, a multimedia journalist and copy editor at TUKO.co.ke
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Equity Bank Kenya interest rates on loans.
Equity Bank Announces Reduction of Loan Interest Rates for Kenya
Equity Bank Kenya loans and interest rates - Tuko.co.ke