Absa Bank Kenya has cut its lending rate with the biggest margin of 3 percent for its new and existing borrowers in what it says is aimed at “letting customers who have taken loans to enjoy lower rates.”
This is the third time in three months that Absa Bank is adjusting its lending rate. “The adjustment is in light of the changes in the financial markets and government securities, and follows the recent reduction of the Central Bank Rate (CBR) and cash reserve ratio requirement by the Central Bank.”
In January, Absa adjusted its Base Rate downwards by 300 basis points (3 percent) from 16.5 percent to 13.5 percent to “allow a wide variety of customers with loan facilities priced off this benchmark rate to enjoy lower interest rates.”
Here is the statement from the lender:
During the week, Absa Bank Kenya marked a significant milestone for its business customers by flagging off a delegation of Absa Business Club members heading to Estonia and Finland for a series of business engagements designed to unlock new trade and investment opportunities. This initiative, organized in collaboration with Golden Connections International, aims to connect Kenyan businesses with their European counterparts, fostering valuable business relationships and potential collaborations.
The trip is scheduled to take place from 15th to 25 February 2025, and will feature participants from diverse sectors including ICT, manufacturing, industry 4.0, healthcare, and fintech. This engagement offers attendees a chance to gain insights and forge key business connections within the Estonian and Finnish markets, creating a pathway for leveraging global opportunities. The initiative is anticipated to enhance trade, investment, and collaboration, while simultaneously improving brand positioning and business growth for the engaging companies and entrepreneurs.
Speaking during the flag-off event, Absa Bank Kenya’s Business Banking Director, Elizabeth Wasunna, highlighted the crucial role financial institutions play in connecting local entrepreneurs to global markets.
She said: “We are committed to making a positive impact on the economy and we recognise the crucial role SMEs play, contributing up to 40% of our GDP. For businesses to truly thrive, they need more than just financing but also mentorship, resources, and the right partnerships to access new markets and build global networks that can drive their success. We are indeed excited to partner with the Estonian Embassy and Golden Connections International to facilitate the travel of 36 SMEs to Estonia and Finland, reaffirming our commitment to providing SMEs with the tools they need to compete on the global stage.”
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