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Co-operative bank has capped interest on new loans at 14.5%

Meanwhile commercial banks have began adjusting their rates to comply with the new law signed president Kenyatta capping interest rates at not more than 4% above the Central Bank Rate.
In an internal memo sent to all its branches, Co-operative bank has directed branch managers and lending units to revise the pricing of all new loans to a rate not 14.5 per cent making it the first lender to adopt the new lending regime.
The development comes a day after the Kenya Bankers Association assured depositors that it will comply with the new rules
Some banks have already suspended credit facilities for unsecured loans and directed their staff not process any new loan applications.
Sources at the Central Bank said the regulator was still awaiting the gazettement of the new law by the Attorney General before releasing regulations to guide its implementation.

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