The Cooperative Bank of Kenya customers can now smile all the way to the bank after the leading lender in the country announced that it has reduced its lending rate by 2 per cent.
In a statement dated February 10, 2025 and signed by the Group’s Managing Director and Chief Executive Officer Dr. Gideon Muriuki, the lender announced that it was lowering the base lending rate from 16.5 per cent per annum to 14.5 per cent per annum.
The new rates, which took effect immediately, therefore will boost customers’ access to loan facilities and in return boost the economy while empowering Kenyans financially.
“Co-op Bank Group is pleased to announce a significant 2% reduction in our Base Lending Rate from 16.5% p.a. to 14.5% p.a. This reduction takes effect immediately. The effective lending rate will be the Base Lending Rate of 14.5% p.a. plus a margin of between 0% p.a. to 4% p.a. based on the individual customer’s credit profile,” said Dr. Muriuki in the statement.
“The reduction in lending rates is intended to stimulate credit growth to key sectors of the economy notably the MSMEs that are a critical engine to drive and sustain economic growth,” he added.
The base lending rate is the standard interest rate charged by a bank. The lower the rate the lower the amount individuals pay on loans and mortgages.
Also, individuals who save with the bank are likely to earn more interest on their savings.
The reduction in lending rates is intended to stimulate credit growth to key sectors of the economy notably the MSMEs that are a critical engine to drive and sustain economic growth.
With the drop, Cooperative Bank became one of the tier-one banks offering the lowest lending rates across the country, according to data supplied by the Central Bank of Kenya.
Since its inception, Coop Bank has become a powerhouse and integral part of Kenyans’ lives with its slate of affordable loans accessible via all platforms.
The lender offers mobile loans, asset financing, Mortgages, Ministry of Micro, Small & Medium Enterprises (MSME) loans, personal loans, salary advances, and Co-op-a-maji loans among others.
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In November 2024, the bank announced a net profit of Ksh19.2 billion in the third quarter of 2024 compared to Ksh18.4 billion reported in the same period in 2023. The growth represented a 4.4 per cent increase.
The NSE-listed bank realised a profit before tax of Ksh26.8 billion for the third quarter, 8.5 per cent growth compared to Ksh24.7 billion recorded in a similar period in 2023.
By Our Reporter.
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