NCBA Borrowers to Pay More As the Bank Seeks to Increase Lending Rate

Borrowers of the NCBA Bank will have to pay more for loans when the lender raises its lending rate.

On loans denominated in Kenyan shillings, the lender’s APR would rise from 13 percent to 14.5 percent beginning November 8, 2023.

Dollar loans will also have a new interest rate of 11%, up from 10.5 percent.

Higher interest rates will have an impact on borrowers, resulting in more 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.

The Monetary Policy Committee (MPC) of the Central Bank of Kenya (CBK) raised its base lending rate from 9.5 percent to 10.5 percent in July to combat runaway inflation, which had jumped to eight percent in June from 7.9 percent in May.

As a result, financial organizations such as Co-operative Bank, Equity Bank, and NCBA Bank, among others, raised their loan rates.