Co-operative Bank emerged as the local top bank in availing credit facilities to Kenyans by the end of March this year.
This is after the bank posted a 15 per cent growth in its loan book which was the highest among all local lenders. Corporate, personal and SME book which together accounts for about 65 per cent of the loan book. SME loan book accounted for 8.8 per cent of the loan book from 6.8 per cent
This came at a time when local banks have been withholding credit facilities from Kenyans following the enactment of the law capping interest rates. Currently, banks in Kenya are not allowed to lend at more than 14 per cent.
According to investment firm, Cytonn Investments, Co-operative Bank was able to achieve this fete after it became the first local lender to comply with the new law and alter its lending mechanisms to 14 per cent.
Additionally, according to Co-operative Bank CEO Gideon Muriuki, the bank’s history of fair lending to borrowers put it an advantage. “Our pricing was already low, with our average lending rate at 17 per cent per annum prior to rate caps,” he said, adding that Co-op is likely to erode the effects of interest rates by availing higher volumes to Kenyans seeking to grow through credit.
Over the past one year, the bank has introduced easy-to-access loan platforms such as the MCo-op Cash loans which come with limits of up to Sh. 200,000 for secured personal loan, Sh. 100,000 for salary advances and Sh. 200,000 for business loans.
