Co-operative Bank of Kenya has taken a bold step to boost access to credit by slashing its base lending rate from 16.5% to 14.5% per annum, a move expected to spur economic growth and empower customers financially.
The announcement, made on Monday, positions Co-op Bank among the most competitive tier-one lenders in the country, offering some of the lowest interest rates in the industry.
The revised rate took immediate effect, signaling relief for borrowers, particularly micro, small, and medium enterprises (MSMEs), which rely heavily on affordable credit to sustain and expand their businesses.
What This Means for Borrowers
With the new rates, customers will pay less interest on loans and mortgages, making it easier to access financing for both personal and business needs.
“Co-op Bank Group is pleased to announce a significant 2% reduction in our Base Lending Rate from 16.5% р.а. to 14.5% p.a.,” the lender stated.
Beyond the base rate, the final lending rate will include a margin of 0% to 4% depending on an individual customer’s credit profile.
This means creditworthy customers can access loans at highly competitive rates, further driving affordability in the market.
A Win for MSMEs & Economic Growth
The reduction is set to benefit the MSME sector, a key driver of Kenya’s economy, by making capital more accessible. Lower borrowing costs translate to:
✅ Increased business expansion
✅ Higher employment opportunities
✅ Stronger economic growth
Additionally, savers could see better returns on their deposits, as lower lending rates often lead to more competitive interest rates on savings accounts.
Co-op Bank’s Strong Financial Performance
The decision comes on the heels of Co-op Bank’s impressive financial results. In Q3 2024, the lender posted:
📌 Ksh19.2 billion in net profit, a 4.4% increase from Ksh18.4 billion in Q3 2023.
📌 Ksh26.8 billion in profit before tax, up 8.5% from Ksh24.7 billion in 2023.
The bank’s continued profitability underscores its financial stability and ability to support economic development through affordable lending.
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Accessible & Inclusive Banking
Co-op Bank has established itself as a customer-centric institution, offering a diverse range of loan products tailored to different needs. Customers can access:
🔹 Mobile loans
🔹 Asset financing
🔹 Mortgages
🔹 MSME loans
🔹 Personal loans & salary advances
🔹 Co-op-a-Maji loans for water-related projects
The Bigger Picture
Co-op Bank’s move to lower lending rates aligns with national economic priorities, ensuring that individuals and businesses can access credit affordably. With the bank maintaining its strong financial performance and customer-focused approach, this latest move is set to further cement its position as a leading financial institution in Kenya.
For Kenyans looking for affordable loans and better financial empowerment, this rate cut couldn’t have come at a better time.
