Customers seeking loan facilities from Access Bank will from Mid-June 2023 access them at a higher interest rate.
This is after the bank announced an increase in their KES Base Lending Rate to 13 per cent.
The Base Lending Rate also referred to as BR is basically an interest rate that the bank refers to before it decides on the interest rate to apply to a loan.
In an update on its website, Access Bank said the increase in the BR is following an increase in Central Bank Rate to 9.5 per cent.
“Dear customer, in view of the recent increase in Kenya Central Bank Rate (CBR) from 8.75% to 9.5%, we wish to advise that we will increase our KES Base Lending Rate to 13%,” read part of an update issued on May 29, 2023.
“For Customers with facilities based on CBR, the new CBR rate of 9.5% will apply,” it added. The Bank said the changes will take effect on June 19, 2023.
Inflation expectations
The Central Bank of Kenya on March 29, 2023, announced that Monetary Policy Committee (MPC) had met and agreed to raise the Central Bank Rate (CBR) to 9.50 per cent.
“The MPC noted the sustained inflationary pressures, the elevated global risks and their potential impact on the domestic economy, and concluded that there was scope for a further tightening of the monetary policy in order to anchor inflation expectations,” read part of the update.
“In view of these developments, the MPC decided to raise the Central Bank Rate (CBR) from 8.75 per cent to 9.50 per cent,” it added.
The rate was maintained during a follow-up meeting held on May 29, 2023.
Access Bank Kenya, whose complete name is Access Bank PLC was formerly Transnational Bank Kenya PLC.
In January 2020, the Central Bank of Kenya gave approval for Access Bank Group, a Nigerian multinational, to acquire up to 100 per cent shareholding in Transnational Bank.
