Sidian bank will not adjust the interest rates on new loans already after the law capping interest rates were repealed.
Sidian Bank Board Chair and Centum chief executive James Mworia, in a statement Saturday said they have not made any decision to change interest rates on new loans.
“During the interest rate cap regime we continued to lend to SME’s and micro-enterprises at a rate of Kshs 800mm per month,” he said in response to allegations that they have increased their rates.
According to an alleged internal memo, Sidian, which is owned by investment firm Centum signed by its Chief Executive Chege Thumbi, said new loan rates to take effect immediately include:
Corporates loans will now be charged at 16 percent, SME loan (17 percent), Consumer loans (19per cent), Microloans/unsecured loans (19 percent), Credit Cards (19 percent) and Mobile Loans (19 percent).
The Board of Directors and Management of Sidian Bank “Regret the unfortunate issuance of a statement that it had reviewed and increased interest rates following the repeal of Section 33B of the Banking Act.”
“The bank is committed to acting responsibly and will not increase interest rates arbitrarily,” said Mworia.
The current Central Bank Rate (CBR) has remained at nine percent for most of this year, forcing banks to only lend at a maximum of 13 percent.
Centum bought a controlling stake in Sidian, formerly known as K-Rep Bank, in 2014.