Jijenge Welcomes CBK’s Move to Fast-Track Uptake of Reduced Lending Rates
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Kenya’s leading credit-only microfinance institution, Jijenge Credit Limited, has lauded the Central Bank of Kenya (CBK) for its recent decision to expedite the implementation of reduced lending rates. Under the wise and skillful leadership of Founder and Managing Director Mr. Peter Macharia Kamau, Jijenge Credit welcomes this move as a significant step towards making credit more accessible and affordable for businesses and individuals.
The Central Bank of Kenya (CBK) Governor has announced plans to ensure that the reduced bank lending rates are quickly adopted by commercial banks and transmitted to borrowers. This initiative follows the Monetary Policy Committee’s (MPC) decision to lower the Central Bank Rate (CBR) from 13 percent to 12.75 percent. The move aims to boost credit uptake and reduce inflation, addressing pressures on the exchange rate and mitigating the effects of global price fluctuations.
“We welcome our clients to borrow by taking advantage of our reduced lending rates, which is a welcome move because commercial banks have been raising lending rates since the MPC set the benchmark rate at 13 percent from a low of 10.50 percent, making it difficult for businesses and individuals to borrow money,” Jijenge Credit noted in a statement.
CBK Governor Kamau Thugge emphasized that the bank will push for the rapid transmission of the lower interest rates and inject more liquidity into the financial system to ensure the interbank rate comes down. “In the monetary policy framework, we now have this strong and direct transmission of the policy to the interest rates of the bank, that way we can have that transmission of lower rates to the commercial banks,” he added.
The CBK expects that with the reduced interest rates, pricing will also decrease due to reduced domestic financing requirements. Risk-based credit pricing, where lenders offer borrowers less favorable loan terms based on their credit report information, will also be impacted positively by this move.
Jijenge Credit Limited, under Mr. Kamau’s leadership, continues to support its clients by offering competitive lending rates and promoting financial inclusion across Kenya. The institution is optimistic that the CBK’s proactive measures will stimulate economic growth and provide much-needed relief to borrowers.
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