Reduce the cost of borrowing? I don’t think so.
The Central Bank of Kenya Monetary Policy Committee met today and decided to reduce the KBRR from 9.87% to 8.90% effective today.
I wish the Robert Alais, Cyprian Nyakundis and the Mutais of KOT would start hashtags that will force the banks to lower the interest rates.
This is the numero uno credit I would give Jubilee if they manage to achieve.
This one I can assure you they will. Especially for the existing advance accounts that are pegged to KBRR.
Mbona wasishukishe na kama 5%, this is second time wameshukisha this year but interest rates ziko pale pale
These banks make insane profits and nobody wants to regulate them
Hii rate imeshukishwa ni KBRR. It’s review is done every 6 months. It directly affects the pricing of both existing and new loans for banks.
interest/riba ni haram
so those rates only affects christian inclined peeps
Waislamu have Murabahah too
yap …not riba based
No way when everyone with a payslip from bluechips and gava is queuing for loans from quasi shylocks with double digit monthly interest rates
@Okiya
You reduce lending rates to spur growth. The government is looking at a stabilizing economy as one of the signs to drive the growth rate. That is, a lower interest rate means its cheaper to borrow. That borrowed money is to be used for development. In this case their decision is WEIGHTED towards lending to institutions more than to common raia.
Sijaelewa hii statement.
Common people typically avoid commercial loans and the government knows this. Their decision to lower is to make it attractive to institutions to borrow.
Now my question is will the banks reduce their interest rates?
Yes they will.
Hey …do u think stanchart bank can fall like imperial :oops:…coz I need it to pliz
I don’t trust banks in Kenya to reduce the rates. They will always come up with an excuse of change on some factors (credit risk, liquidity cost, profit margin, administration cost etc) that affect the K and therefore not reduce the interest.
No they cant. kwani walikufanyia nini? Na btw after being closed for 9 months, some branches of Imperial Bank will open today.
Mayo ni loan!!!
Hata benki ikifungwa , loan utalipa tu kwa receiver manager:p
What the cbk Governor said some months back:source Daily Nation
"At a press conference with journalists on January 21, Central Bank of Kenya Governor Dr. Patrick Njoroge appeared to express displeasure with the high banking fees as he noted that interest rates had continued to rise despite the indicative rates being steady.
Dr Njoroge said it is peculiar that the “unwarranted” increases in interest rates by banks are more pronounced among large banks even though they have sufficient liquidity. He accused the large lenders of taking advantage of their dominance to arbitrarily increase costs.
MARKET DOMINANCE
“I can only speculate and I think the issue here is one of market dominance. So they (big banks) will want to throw their weight around because they have a first-mover advantage, a large network, big depositors’ base, wide array of services,” said the governor."