Banks raise lending rates as the shilling depreciates just after RUTO and his wife bragged that their magic with prayers is working on the shilling

Tuesday April 23, 2024 - Kenyan banks have raised the lending rates beginning this month thanks to the volatility of the shilling and its depreciation against the dollar.

The Shilling, between the months of February and March, appreciated against the world's major denominations to become the best-performing currency globally. 

In April, the Shilling became volatile and is now exchanging at 134 units against the Dollar according to the Central Bank of Kenya (CBK). 

While there are fears that the Shilling could slide to a record 160 units against the greenbuck experienced in February and March, the local currency has been trading between 130 and 133 against the dollar for the month of April. 

However, despite the fears by local banks, CBK retained its rate at 13 per cent for April and May 2024 following its Monetary Policy Committee (MPC) meeting.

“The MPC noted that overall inflation is expected to continue declining in the near term, supported by lower food and fuel prices, and pass-through effects of the recent exchange rate appreciation,” CBK banked on the strength of the Shilling while maintaining the CBR.

One of Kenya’s top banks revealed that it has increased its lending rate from 16.5 per cent per annum to 17.5 per cent per annum. 

Additionally, the United States Dollar lending rate was increased from 11 per cent to 11.75 per cent per annum.

The raising of the lending rates will not affect fixed-rate loans but clients with variable-rate loans will be impacted.

The weakening shillings comes just after President William Ruto and his wife, Rachel, bragged that their prayers were working magic to stabilize the shilling.

The Kenyan DAILY POST