I&M Bank reduces lending rates by 0.75 pc to enhance credit access

Gur Khan, I&M bank CEO

I&M Bank has announced a significant reduction in its lending interest rates, aimed at improving credit access for businesses and individuals. This development follows the Central Bank of Kenya’s (CBK) recent decision to lower the Central Bank Rate (CBR), signaling a shift towards a more accommodative monetary policy.

Effective from 23rd December 2024, I&M Bank will reduce its interest rates by an additional 0.5 percent, complementing an earlier reduction of 0.25 percent on 28th November. This cumulative 0.75 percent decrease over two months demonstrates the bank’s commitment to supporting its customers during a period of economic adjustment.

The move aligns with I&M Bank’s brand promise, “On Your Side,” aimed at providing more affordable credit to its diverse clientele. The reduction in lending rates is expected to benefit businesses in the Corporate and SME sectors, as well as individual borrowers, by lowering the cost of borrowing.

Speaking on the initiative, Gul Khan, CEO of I&M Bank Kenya, emphasized the bank’s customer-centric approach. “At I&M Bank, we strive to prioritize our customers’ needs in line with our customer-centric approach to doing business. The interest rate reduction will lower operational costs for our customers in the Corporate, SME, and Personal Banking segments to achieve their growth ambitions. Directionally, interest rates are coming down in Kenya and this is good news for businesses and consumers,” he said.

The bank’s decision is expected to provide much-needed financial relief, particularly for businesses seeking to expand their operations and individuals aiming to meet personal financial goals. By reducing borrowing costs, I&M Bank is playing a pivotal role in stimulating economic growth and fostering resilience among its customers.

This rate adjustment is part of a broader trend in Kenya’s financial sector, where declining interest rates reflect CBK’s efforts to support economic recovery and growth. The move is anticipated to boost borrowing and investment activities, contributing positively to the country’s economic landscape.

For I&M Bank customers, this development underscores the institution’s commitment to providing competitive financial solutions and its proactive approach to adapting to market dynamics. The bank continues to position itself as a key player in Kenya’s financial ecosystem, fostering growth and stability