Kenya: NCBA Borrowers to Pay More for Loans As the Lender Moves to Increase Lending Rate

11 October 2023
Capital FM (Nairobi)
By Kevin Rotich

Nairobi — Borrowers of the NCBA Bank are set to pay more for loans taken as the lender moves to increase the lending rate.

Starting November 8, 2023, the lender will increase its rate from 13 percent to 14.5 percent on Kenyan shilling-denominated loans.

Dollar loans will also attract a new rate of 11 percent, up from 10.5 percent.

Higher rates will affect borrowers, resulting in higher defaults.

"Due to the current macroeconomic environment and rising interest rates, we wish to inform you that effective 8th November 2023, NCBA Bank Kenya's Base Lending Rate will change," NCBA said in a statement.

In July, the Central Bank of Kenya (CBK) Monetary Policy Committee (MPC) increased its base lending rate from 9.5 percent to 10.5 percent to curb runaway inflation, which had risen to eight percent in June from 7.9 percent in May.

Subsequently, financial institutions such as Co-operative Bank, Equity Bank, and NCBA Bank, among others, also increased their cost of loans.

Read the original article on Capital FM.

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