NAIROBI, Kenya, Mar 28 – Access Bank has increased the cost of borrowing loans after increasing the interest rate to 20 percent.
The lender says that it had to hike the rate in response to the tough prevailing economic conditions.
In a public notice, the Nigerian-based bank began implementing the new rate yesterday.
“We have endeavored to cushion customers by containing the prevailing interest rates despite the challenges highlighted,” Access Bank said.
“However, the forgoing market conditions have persisted longer than anticipated and the bank has had to review the Risk-Based pricing to align to the prevailing economic conditions.”
The move comes after the Central Bank of Kenya (CBK) earlier increased its base lending rate from 12.5 percent to 13 percent last month.
CBK’s said that it had to increase the rate to contain inflation as well as stabilize the Kenyan shilling, whose value was declining against major global currencies.
Following the rise, existing and prospective loan borrowers will have to dig deeper into their pockets to service monthly loans.
