Starting November 8, 2023, NCBA Bank borrowers will be paying more for loans as the bank seeks to heighten lending rates.
NCBA Bank the lender will increase its rate from 13 percent to 14.5 percent on Kenyan shilling-denominated loans.
Dollar loans will also attract a new rate of 11 percent, up from 10.5 percent.
Higher rates will affect borrowers, resulting in higher defaults.
“Due to the current macroeconomic environment and rising interest rates, we wish to inform you that effective 8th November 2023, NCBA Bank Kenya’s Base Lending Rate will change,” NCBA said in a statement.
In July, the Central Bank of Kenya (CBK) Monetary Policy Committee (MPC) increased its base lending rate from 9.5 percent to 10.5 percent to curb runaway inflation, which had risen to eight percent in June from 7.9 percent in May.
Subsequently, financial institutions such as Co-operative Bank, Equity Bank, and NCBA Bank, among others, also increased their cost of loans.