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TUKO.co.ke journalist Japhet Ruto has over eight years of experience in financial, business, and technology reporting and offers profound insights into Kenyan and global economic trends.
Over 50% of Kenyans rely on loans to make ends meet and start businesses.
A report by Deloitte showed that mobile loans account for 54% of the total volume of loans borrowed by Kenyans.
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"Digital loans in Kenya are the most recurrently used loan behind social network and money-lender loans, Moreover, those with existing loans are over-indebted or struggling to pay," the report stated.
A new report by the Central Bank of Kenya (CBK) has shown the average lending rates of commercial banks.
The report revealed Premier Bank Limited has the cheapest rate at 9%, while Middle East Bank Limited has the highest rate (20.96%).
Bank | Overall rate for personal and business loans |
1. Premier Bank Kenya Ltd | 9% |
2. Access Bank Kenya PLC | 11.37% |
3. Diamond Trust Bank | 12.39% |
4. Consolidated Bank | 13.39% |
5. Kingdom Bank | 14.02% |
6. Guardian Bank | 14.67% |
7. Ecobank Kenya Ltd | 14.72% |
8. Bank of India | 14.94% |
9. Co-operative Bank of Kenya Ltd | 15.18% |
10. Paramount Bank | 15.35% |
11. Habib Bank | 15.38% |
12. UBA Bank | 15.55% |
13. Gulf African Bank | 15.68% |
14. Equity Bank | 16.02% |
15. Family Bank | 16.13% |
16. DIB Bank | 16.27% |
17. KCB | 16.40% |
18. Development Bank | 16.46% |
19. National Bank | 16.82% |
20. Guaranty Trust Bank | 16.85% |
21. Prime Bank | 16.85% |
22. African Banking Corporation | 17.19% |
23. Standard Chartered Bank | 17.32% |
24. Stanbic Bank | 17.49% |
25. M-Oriental Bank | 17.58% |
26. Bank of Baroda | 17.73% |
27. Citibank Kenya | 17.98% |
28. I&M Bank | 18.48% |
29. Bank of Africa | 18.51% |
Kenya's commercial banks counted losses as the ratio of non-performing loans (NPLs) increased.
The CBK Monetary Policy Committee (MPC) reported that the ratio of NPLs to gross loans increased to 16.1% in April 2024 after raising the base lending rate to 13%.
This represented a jump from 15.5% reported in February 2024, when Central Bank Rates(CBR) was 12.5%.
Proofreading by Mercy Nyambura Guthua, journalist and copy editor at TUKO.co.ke
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