Since the signing of the banking amendment act by President Uhuru Kenyatta, CBA (Commercial Bank of Africa) has made a move to lower its interest rates to a maximum of 12.9% which is the lowest loan interest rate in the market.
A statement signed by the Group’s Managing Director, Isaac Awuondo, read that the bank will lower interest rates on loans to a maximum of 12.9% from September 14, 2016.
This move might cause a reaction by other banks to lower their rates significantly in order to remain competitive as most had capped their rates at 14.5% in compliance with the banking act.
CBA first came into the limelight after launching M-Shwari in partnership with Safaricom. Last year M-shwari together with CBA had disbursed loans of over 50 billion Kenyan shillings. CBA currently holds the highest number of loan accounts in the country at over 10 million customers. On average CBA process over 50,000 loans a day a number that is soon going to rise given the decreased interest on loans.
CBA’s portfolio speaks for itself. Given time this bank will come out as a force to be reckoned with in the banking industry.
According to Wikipedia CBA is wholly owned by Mama Ngina Kenyatta, other reports have it as owned by the Kenyatta Family.