HFC, the banking arm of HF Group, and Chase Bank are the latest lenders to announce planned reduction in interest rates by up to a percentage point against the backdrop of a controversial bid to control loan rates. “Effective August 25, HFC will lower its interest rates in line with the 0.97 per cent reduction of Kenya Bank’s Reference Rate (KBRR) by the Central Bank of Kenya (CBK),” said HFC in a public notice yesterday. They include National Bank of Kenya, Family Bank, Bank of Baroda and Bank of Africa. Exploitation by commercial banks“Kenyans have suffered for long from exploitation by commercial banks, which are charging exorbitant interest rates,” Mr Munya said at Ncuui Church in Muthara, Meru where he attended a fundraiser. Bankers have however urged Mr Kenyatta to reject the Bill, arguing that it will hit small borrowers the hardest.

Source: Daily Nation August 15, 2016 20:46 UTC