NCBA Bank Kenya PLC has announced a further reduction in its Kenya Shillings Base Lending Rate (NBLR) to 14.34% per annum, down from 15.34% p.a., effective immediately. This move follows the recent downward revision of the Central Bank Rate (CBR) by the Central Bank of Kenya, reflecting NCBA’s commitment to making financial services more accessible and affordable for its customers.
Since August 2024, the NBLR has dropped from 17.50% p.a. to 14.34% p.a., marking a cumulative reduction of 3.20%. During the same period, the CBR has declined by 3.00%, prompting this strategic rate adjustment by NCBA.
Why This Matters
The reduction in the base lending rate is a significant development for borrowers and the wider economy:
- Lower Cost of Borrowing: Customers with variable-rate loans will benefit from reduced monthly repayments, easing household and business budgets.
- Economic Stimulus: More affordable credit encourages borrowing and investment, helping to spur economic growth.
- Customer Relief: In a period marked by economic uncertainty, this move provides much-needed financial relief and flexibility to borrowers.
- Positive Market Signal: The rate adjustment reflects broader macroeconomic improvements, including reduced inflationary pressure and accommodative monetary policy.
- Sector Competitiveness: By aligning with the market, NCBA strengthens its position as a responsive and customer-focused financial institution.
Impact on Loan Facilities
- Fixed Rate Loans: These will remain unaffected by the rate change.
- Variable Rate Loans: Interest rates linked to the NBLR will be adjusted effective May 1, 2025.
- New Loan Facilities: The revised Base Lending Rate is applicable with immediate effect.
- All other terms and conditions of existing loan facilities remain unchanged.
“We are committed to ensuring our customers benefit from favorable market conditions,” said NCBA in a statement. “This adjustment reflects our mission to support financial well-being and enable our clients to thrive.”
Customers seeking more information are encouraged to contact their Relationship Manager, call NCBA on 020-288 4444 / 0711 056 444 / 0732 156 444, email contact@ncbagroup.com, or visit any NCBA branch.
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