The Cooperative Bank of Kenya will not charge interest rates on existing loans.
According to the statement sent to Newsroom, the bank Chief Executive Officer Gideon Muriuki said that they will retain existing rates on the outstanding loans even after repeal on rate caps.
“We are pleased to advise all our customers that Co-op bank is meanwhile retaining existing interest rates for all our outstanding loans based on existing money market conditions,” Muriuki said.
The lender has however exuded confidence that the law which removed the capping of interest rates will benefit the small mushrooming businesses in the country through cash flows.
President Uhuru Kenyatta signed the Finance Bill 2019 on November 7, 2019, where section 33B of the Banking Act, which provided for interest rates cap, was repealed.
Several banks have announced that they would make changes to the interest rates.