Kenyan lenders cut mortgage borrowing costs
Barclays Bank of Kenya is the latest financial institution in the country to lower borrowing costs for those seeking a mortgage.Business Daily reports the company has reduced its mortgage rate from 14 per cent to 11.99 per cent as competition in the market increases. Frank Irei of Housing Finance was quoted as saying many lenders are "enjoying [a] cheap source of financing from customer deposits", which is enabling them to make cuts.
Standard Chartered, Kenya Commercial Bank (KCB) and CFC Stanbic have all lowered their rates recently and KCB Chief Executive Martin Oduor-Otieno said his business has the capacity to implement further decreases. "We were able to reduce our lending rates because we merged our operations with [mortgage company] S&L," he explained.
The Central Bank of Kenya recently introduced a new directive enabling the nation's financial institutions to offer their services through agency banks, which, Mr Irei told the news source, has enabled lenders to reach a wider market.