The only other time that the average weighted interest rate by commercial banks went below 12 per cent was in November 2004 at 11.97 per cent. SEE ALSO: Kenya central bank to hold its rate-setting meeting on June 30This rate, however, does not include other fees and commissions that banks charge for a loan. SEE ALSO: Banks press for SME lending fundPrivate sector credit grew by nine per cent in the 12 months to April 2020, the largest increment since May 2016 when credit grew by 10.3 per cent. In March, after CBK had cut the lending rate by one percentage point to 7.25 per cent, credit to the private sector grew by 8.9 per cent. CBK noted that credit uptake by micro, small and medium enterprises is expected to increase, particularly with a proposed credit guarantee scheme that could de-risk lending to the sector.

Source: Standard Digital June 15, 2020 14:37 UTC