Nairobi, KENYA: Diamond Trust Bank (DTB) has adjusted the interest rates levied on all new and existing loans to not more than 14.5% .
The group CEO Nasim Devji in a presss statement released to media houses on Friday, said that the initiative has been effected as from 1st of September 2016.
The bank will also review its operations to align applicable interest earning deposit accounts to the new minimum rate requirement.
This prompt action follows the decision reached by parliament to cap credit facilities at 4% above the base rate set by the Central Bank of Kenya and set a minimum rate on interest earning deposits pegged to the Central Bank set base rate.
“DTB prides itself as a customer centric financial institution. We hope this legislation will encourage more Kenyans not only to take advantage of the affordable credit facilities but also improve their savings culture and livelihoods,” Devji said .
On SME lending DTB has been committing over 2 billion shillings to lend to SME’s under the Kenya Bankers Association (KBA) Inuka Enterprise programme.
These funds will also benefit women and youth owned SME’s who will not only get funding but also access entrepreneurial training.
“We hope that through this initiative, DTB will play a key role in promoting business growth and job creation as well as making it easier for viable businesses to access capital,” He said
DTB has pledged to work closely with the Central Bank of Kenya to ensure compliance with the legislation.