Ecobank Kenya has reduced its base lending rate from 21.5 per cent to 18.5 per cent. The new rates will take effect on February 15. It is the first commercial bank to cut its lending rate after the Central Bank of Kenya cut its benchmark interest rate last week. The Monetary Policy Committee reduced the Central Bank Rate from 11 per cent to 9.5 per cent. The MPC cited low inflation and a stable shilling as the key reasons for slashing the rate. It remains to be seen if other Commercial banks will follow suit and reduce rates. Currently some banks charge interest rates as high as 25 per cent.
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