• About
  • Advertise
  • Privacy & Policy
  • Contact
Kenyan Business Feed
  • Home
  • African
  • News
    • Agribusiness
    • Courts
    • Hospitality
    • Manufacturing
  • Education
  • Health
  • Reports & Analysis
  • World Business
No Result
View All Result
  • Home
  • African
  • News
    • Agribusiness
    • Courts
    • Hospitality
    • Manufacturing
  • Education
  • Health
  • Reports & Analysis
  • World Business
No Result
View All Result
Kenyan Business Feed
No Result
View All Result
Home News

Co-op Bank Leads in Compliance as CBK Cracks Down on High Lending Rates

Kenyan Business Feed by Kenyan Business Feed
Share on FacebookShare on Twitter

The Central Bank of Kenya (CBK) has issued a stern warning to banks that fail to reduce their interest rates in accordance with the lowered Central Bank Rate (CBR). This directive is part of an ongoing effort by the CBK to ensure that the benefits of reduced cost of funds are passed on to borrowers, thereby stimulating credit growth and economic activity.

The CBK's stringent measures and the compliance of major banks like Co-op Bank underscore the significance of ensuring that reduced interest rates translate into tangible benefits for borrowers, ultimately fostering economic growth and stability.
The CBK’s stringent measures and the compliance of major banks like Co-op Bank underscore the significance of ensuring that reduced interest rates translate into tangible benefits for borrowers, ultimately fostering economic growth and stability.

The CBK has emphasized that any bank that does not comply with the new interest rate guidelines will face penalties. This enforcement measure aims to prevent banks from maintaining higher lending rates despite the reduction in the CBR. By lowering the CBR, the CBK seeks to make borrowing more affordable for individuals and businesses, particularly in key sectors such as micro, small, and medium-sized enterprises (MSMEs).

To ensure compliance, the CBK governor, Kamau Thugge, has announced that on-site inspections will be conducted to verify that banks are adjusting their interest rates according to the lowered CBR. These inspections are designed to hold banks accountable and ensure that the benefits of reduced cost of funds are effectively passed on to borrowers. Banks that do not adhere to the reduced rates will be penalized in accordance with the law.

In this context, Co-operative Bank of Kenya has demonstrated its compliance by reducing its base lending rate to 14.5 percent. This proactive step aligns with the CBK’s regulatory framework and supports the broader economic goals of making credit more accessible and affordable for customers.

Co-op Bank’s compliance sets a positive example for other lenders to follow, highlighting the importance of adhering to regulatory directives for the benefit of the overall economy.

The CBK’s stringent measures and the compliance of major banks like Co-op Bank underscore the significance of ensuring that reduced interest rates translate into tangible benefits for borrowers, ultimately fostering economic growth and stability.


Kenyan Business Feed is the top Kenyan Business Blog. We share news from Kenya and across the region. To contact us with any alert, please email us to [email protected]
Kenyan Business Feed

Kenyan Business Feed

Recommended.

TENDER NO.17/KBC/2018-2019 SALE (HARVESTING & DISPOSAL) OF GRASS – KBC

May 15, 2019
Tips on how to answer ‘Why do you want to work here?’ question during an interview

How to answer Where Do You See Yourself in Five Years?

October 29, 2019

Subscribe.

Trending.

Safaricom’s SIG Forum empowers SMEs with branding insights from 3Verse Kenya, showcasing award-winning campaigns and inclusive business support.

Safaricom’s SIG Forum Empowers SMEs as 3Verse Kenya Shares Award-Winning Branding Strategies

June 23, 2025
Co-op Bank Launches New Financial Solutions to Empower MSMEs in Kenya

Co-op Bank Launches New Financial Solutions to Empower MSMEs in Kenya

June 23, 2025
Tourism CS Rebecca Miano discusses the economic impact and global appeal of the 2025 Safari Rally

Tourism CS Rebecca Miano Reveals Economic Impact of the 2025 Safari Rally

April 1, 2025
PLP and Safaricom Graduate 300 Youth in Push for Digital Talent Development Across Kenya

PLP and Safaricom Graduate 300 Youth to Boost Kenya’s Digital Talent Pipeline

June 23, 2025
Co-operative Bank Subsidiaries

Co-operative Bank Subsidiaries Shine with Strong 2024 Profits

April 2, 2025
Kenyan Business Feed

We focus on news, analysis, and reports about Kenyan business, covering sectors like agriculture, finance, tourism, and technology.

Categories

  • African
  • Agribusiness
  • Courts
  • Education
  • Health
  • Hospitality
  • Manufacturing
  • NetWorths
  • News
  • Reports & Analysis
  • World Business

Popular News

  • First look at the prison where El Chapo may live for the rest of his life

    First look at the prison where El Chapo may live for the rest of his life

    2157 shares
    Share 1040 Tweet 466
  • Sameer Africa CEO Sacked

    1803 shares
    Share 749 Tweet 439

Recent News

Co-op Bank Partners with WorldRemit to Power Seamless Diaspora Transfers in Kenya

Co-op Bank Partners with WorldRemit to Power Seamless Diaspora Transfers in Kenya

June 23, 2025
Co-op Bank Launches New Financial Solutions to Empower MSMEs in Kenya

Co-op Bank Launches New Financial Solutions to Empower MSMEs in Kenya

June 23, 2025
  • Home
  • African
  • News
  • Education
  • Health
  • Reports & Analysis
  • World Business

© 2025 KBF

No Result
View All Result
  • Home
  • African
  • News
    • Agribusiness
    • Courts
    • Hospitality
    • Manufacturing
  • Education
  • Health
  • Reports & Analysis
  • World Business

© 2025 KBF