CBK data reveals lenders with highest interest charges

 

Premier Bank offers the cheapest credit at a flat rate of 9pc for all categories of loans, according to the latest data from the Central Bank of Kenya (CBK).

The data further indicates that Co-operative Bank of Kenya is the go-to bank if you are looking for a cheap overdraft among the largest banks in Kenya, pricing its loan at nearly half when compared to the most expensive peer.

CBK has been compiling the lending rate for commercial banks since July this year.

This is the second month in a row that Co-operative Bank of Kenya has beat peers in offering the lowest overdrafts.

If you are looking for an overdraft repayable in less than a year, Co-operative Bank of Kenya charges 11.05pc while NCBA charges 20.66pc.

Overall, the CBK data shows that Co-op Bank charged a mean interest rate of 14.88pc as compared to Absa Bank’s 20.02pc.

On average, the data indicates that Co-op Bank ranks seventh overall in pricing of loans.

Premier Bank offers the cheapest credit at a flat rate of 9pc for all loans, followed by Access Bank at 11.42pc and Diamond Trust Bank at 12.44pc.

The banking regulator says six banks have priced their loans above 20pct.

The most expensive commercial banks to borrow a loan are Middle East Bank which charges 21.52pct, HFC at 20.5pc, Credit Bank at 20.25pc and Absa Bank Kenya at 20.02pc.

By Stanley Wabomba -