I&M Bank has reduced its lending interest rates by 0.75 percent to increase access to credit for individuals and businesses in Kenya in response to the Central Bank of Kenya’s (CBK) recent cut in the Central Bank Rate (CBR).

The first reduction, which occurred today, 28 November 2024, slashes rates by 0.25%, while the second phase of the rate reduction, a further 0.5%, will take effect on 23 December 2024.

The total 0.75% decrease, implemented in two phases over two months, is expected to provide financial relief to businesses and individual borrowers, making credit more affordable.

I&M Bank Kenya Chief Executive Officer (CEO) Gul Khan says the reduction is in line with the bank’s customer-centric approach and its commitment to enhancing access to financial services.

“At I&M Bank, we strive to prioritize our customers’ needs, and this interest rate reduction will lower operational costs for our clients in the Corporate, SME, and Personal Banking segments.”

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According to Khan, this strategic decision by I&M Bank is expected to positively impact many customers, including businesses that rely on credit to scale their operations and individuals seeking affordable loans for personal projects or needs.

The move follows a directive by the Central Bank of Kenya (CBK) requiring lenders to slash interest rates to spur investment and encourage borrowing.