Access Bank PLC has announced that it will review its loan interest rate from April 27, 2024.
The Bank announced on March 27 that the decision is as a result of the current macroeconomic environment which has promoted the rise of short-term rates.
“Considering this, we wish to advise our customers that we shall adjust our loan interest rates to reflect a revised Access Bank Base Rate of 20% p.a. plus a margin, based on the customer’s risk rating with effect from 27th April 2024,” the Bank announced.
The Bank informed its customers that the changes will apply to all existing and new Kenya Shilling denominated credit facilities.
Access Bank explained that it has struggled to cushion customers by maintaining the prevailing interest rates despite the challenges economic hardship.
“However, the foregoing market conditions having persisted longer than anticipated, and the Bank has had to review the Risk-Based Pricing to align to the prevailing economic conditions,” read part of the announcement.
The Bank will continue to assess the market and advise accordingly in case of any further changes.
Customers with enquiries can contact their relationship manager, branch Manager, or the Bank’s contact centre on 0704 331 786.
“We take this opportunity to thank you for choosing Access Bank Kenya as your preferred banking partner,” the Bank said.
Access Bank operates in Kenya via its subsidiary Access Bank Kenya Limited.
CBK Revised Rates
The Central Bank of Kenya (CBK) raised the Central Bank Rate (CBR) by 50 bps to 13% in a meeting on February 6, 2024.
That increase brought the borrowing costs to its highest since October 2012.
CBK explained that the decision will ensure that inflationary expectations remain anchored.
The policy makers said the increase on CBR would address pressure on exchange rates and ensure inflation reduces towards the 5% mid-point of the target range.
This came after a massive 200 bps hike on CBR from 10.5% to 12.5% following the Monetary Policy Committee (MPC) meeting on December 5, 2023.
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Access Bank Acquires National Bank of Kenya
This development came after Access Bank acquired 100% ownership of the National Bank of Kenya Limited (NBK) from KCB Group PLC.
Access Bank Managing Director (MD) Roosevelt Ogbonna said, “the transaction is an important milestone for the Bank as it moves us closer to achieving their five-year strategic plan through increased scale in the Kenyan market.”
Ogbonna stated that the Bank is building a strong and sustainable franchise to encourage Africa trade, advance financial inclusion, and empower many to achieve their financial dreams.
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KCB Group CEO Paul Russo noted the sale was an opportunity to maximize value for shareholders and strengthen the competitive position of the Group.
He maintained that the step marks the opening of new opportunities adding that the past four years have been defining for NBK as a KCB Group subsidiary.
KCB said NBK customers will continue to access services across various touchpoints as usual including through the branch network and mobile banking platforms.
