CFC Stanbic Bank has become the first lender to cut rates for all loans - both new and existing.
In a press briefing this morning, CFC chief executive officer Philip Odero said the bank has answered the cry of borrowers in cutting rates for both old and new loans.
In realigning its rates to the new law, this means it will charge an interest of not more than 14.5 per cent on all loans.
Co-operative Bank was the first lender to cut lending rates in line with the new law passed last week capping interest rates at 400 basis points above the prevailing Central Bank Rate.
Read:Co-op Bank caps loans at 14.5% as rout on bank stock persists
Majority of lenders followed suit announcing that new loans will be charged an interest of 14.5 per cent but said they will await Central Bank directive on existing loans.
Other than Co-op and CFC other banks that have reduced their lending rates as per the new law are Kenya Commercial Bank, Standard Chartered and Barclays.