April 1, 2019 . Between PSC and President, who calls the shots in the Magoha affair? CBK’s Monetary Policy Committee Reduces Lending Rate To 8.5% By Juma / November 26, 2019 | 8:58 am The Central Bank of Kenya’s Monetary Policy Committee (MPC) has reduced the Central Bank Rate (CBR) from 9 percent to 8.5 percent saying the economy is currently “operating below potential.” The Central Bank (CBK) lending rate of 9% has been retained as announced in a meeting held on September 23, 2019 by the Monetary Policy Committee ((MPC). CBK Law. The bank's Monetary Committee met on Monday and noted that the global economic outlook is uncertain due to the pandemic, it, however, could not reveal the extent of the adverse effects on the Kenyan economy because it is still evolving. Nevertheless, they expressed a favourable outlook about the renewed focus on MSMEs and agriculture, payments of pending bills by the government, the decline in international oil prices, benefits from infrastructure investments, and improved lending to the private sector. In addition, CBK cut rates of other monetary policy instruments, by 0.125% for the entire interest rate yield curve, up to the ten-year term. INTEREST RATE CAP. MPC reported that month-on-month overall inflation remained within the target in July and August 2019 as it fell to 5 percent in August from 6.3 percent in July. The Central Bank of Kenya (CBK) on Monday retained its benchmark lending rate at 9.0 percent due to the relatively stable inflation rate. This website uses cookies to improve your experience while you navigate through the website. The current account deficit is projected at 4.0–4.6 percent of GDP in 2020, but the outcome will depend on the duration and intensity of the pandemic, and its impact on exports particularly horticulture, transport and tourism services, and imports. Visa Card. However, respondents revised downwards their optimism on economic prospects, due to COVID-19 concerns. NAIROBI, Kenya, Sep 24-Central Bank of Kenya has maintained the base lending rate at 9 percent, owing to stability in inflation rates. The law puts a ceiling on the lending rate by banks and other financial institutions to at most 4% above the Central Bank of Kenya (CBK) base rate, known as the Central Bank Rate (CBR). But opting out of some of these cookies may affect your browsing experience. OUR BRANCHES. Odero Charles | The ongoing interventions by the Government are aimed at containing the pandemic and moderating the economic and social impact. This page provides - Kenya Bank Lending Rate - actual values, historical data, forecast, chart, statistics, economic calendar … The Central Bank of Kenya (CBK) has kept its key lending rate to banks at 9 percent unchanged since July 2018. These cookies will be stored in your browser only with your consent. Check latest offers & Promotions of CBK Accounts & ... MY TOOLS. NAIROBI, Kenya, Nov 27 – Central Bank of Kenya has maintained its benchmark lending rate at 7.00 percent, the fifth time in a row noting that the current accommodative monetary policy stance remains appropriate. Capital Group Limited. This includes repurchases (REPO), CBK Bonds, the Term-Deposits system, direct intervention instruments, as well as Public Debt instruments, effective 28-10-2020. The Monetary Policy Committee also decided to reduce the Cash Reserve Ratio (CRR) to 4.25 percent from 5.25 percent, releasing Sh35.2 billion as additional liquidity availed to banks to directly support borrowers that are distressed as a result of COVID-19. Auctioneers take banks to court over fee tussle, Uhuru’s grand plan for reopening of schools, Governor Sang and Deputy take pay cuts to boost funds in coronavirus fight, CBK lowers lending rate to 7.25 on coronavirus effect considerations. Although its full impact is yet to be... NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of... NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the... © 2020 Capital Digital Media. This was attributed to ongoing reforms in the banking sector to tighten Credit Information sharing mechanism and promote transparency in pricing. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. Additionally, CBK will ensure that the interbank market and liquidity management across the sector continue to function smoothly. In a statement, the Monetary Policy Committee (MPC) said that the move was as a result of optimum performance of the general economy amidst volatility jitters both internally and externally. It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. For the seventh month on the trot, the Central Bank of Kenya (CBK) has locked the base lending rate at 7.00% citing the intended effect on the economy the measures that the regulator introduced in March are having. Global growth is highly uncertain but expected to weaken significantly in 2020, mainly due to the adverse direct and indirect impact of COVID-19 across the world. CBK, however, expects the inflation rate to remain within the target range due to expectations of lower food prices with expected favorable weather conditions and lower electricity prices. CBK Forms the Higher Committee of Shari’ah Supervision. The Central Bank of Kenya (CBK) has maintained its base lending rate at 7% moving away from a back to back streak that had seen the monetary policy regulator cut the lending rate in March and April, moves that reeked of tough times ahead but nonetheless allowed customers to borrow at the lowest rates … CBK Visa. 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The ratio of gross non-performing loans (NPLs) to gross loans stood at 12.7 percent in February 2020 compared to 12.0 percent in December, mainly reflecting increases in NPLs in the manufacturing, energy and personal/household sectors. By “The MPC concluded that the current policy stance remains appropriate and therefore decided to retain the CBR at 9 percent,” said CBK. Changes in the CBR reflect the monetary policy stance that the Bank is pursuing. Likewise whenever the Bank wishes to withdraw liquidity through a Vertical Repo, the CBR is the highest rate that the CBK will pay on any bid received. 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Trade flows have been significantly disrupted, while the continued volatility in international financial markets will worsen the outlook. "The MPC will closely monitor the impact of this change to its policy stance, as well as developments in the global and domestic economy, and stands ready to take additional measures as necessary," the regulator said in a statement to media houses. Njoroge said the lenders are only expected to comply with Section 33B of the Banking Act even as the effects of the repealing of the rates cap takes effect/FILE. Bank Lending Rate in Kenya increased to 11.94 percent in August from 11.92 percent in April of 2020. In a statement, the Chairman of the Monetary Policy Committee Patrick Njoroge said month-on-month overall inflation remained within the target in July and August 2019, dropping to 5 percent in August from 6.3 percent in July. 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