Access Bank has increased the cost of borrowing loans after raising the interest rate to 20 percent in response to the tough prevailing economic conditions.

In a public notice, the Nigerian-based bank began implementing the new rate on March 27.

“We have endeavored to cushion customers by containing the prevailing interest rates despite the challenges highlighted.”

“However, the forgoing market conditions have persisted longer than anticipated and the bank has had to review the Risk-Based pricing to align to the prevailing economic conditions,” Access Bank said.

The move comes after the Central Bank of Kenya (CBK) increased its base lending rate from 12.5 percent to 13 percent last month.

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CBK said it had to increase the rate to contain inflation and stabilize the Kenyan shilling, whose value was declining against major global currencies.