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Barclays Bank will not change interest rates of existing loans

Barclays Bank of Kenya, a member of Absa Group has put out a statement following the signing of The Finance Act 2019 by President Uhuru Kenyatta that effectively repealed Section 33B of the Banking (Amendment) Act 2016 removing the cap on interest rates charged by financial institutions.

In a statement signed by the bank’s CEO Jeremy Awori, the bank said it is confident the development will allow for wider access to credit, especially for the small and medium enterprises, which play an integral role in the development of the economy. “As an organization, we will continue to play our part and are currently developing additional financing solutions which we will communicate in due course.”

The lender assured its customers that the interest rates on all existing loans shall remain unchanged.

“As a leading financial institution, we are committed to continue offering innovative propositions for our customers across segments. We have revamped our SME Wezesha Biashara proposition to include unsecured credit of up to Ksh 10 million, LPO financing and invoice discounting of up to Ksh 50 million,” read part of the statement.

The bank added that it has a strong Asset-based financing solution for businesses and through its Timiza proposition, it continues to give Kenyan entrepreneurs convenient access to credit on their mobile devices.

“As we transition to Absa, we remain committed to actively participating in the growth of our economy,” concluded the statement.

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