NHC Spares Clients High Interest Rates
Mortgage holders with the National Housing Corporation will sigh with relief after the State agency announced on Wednesday it would maintain its 13 per cent interest rate despite the prevailing high cost of credit.
NHC Managing director Andrew Saisi said the current
turbulence in the financial market is a temporary
phenomenon and will not necessitate an increase in its charges.
“We will not increase our interest rates since we have a responsibility to the tax payers and, therefore, our rates will be maintained at 13 per cent over a period of 18 years for our tenant purchase clients and 10 years for our rural and peri-urban housing loans clients as has been the case,” said Mr Saisi.
Borrowers have been feeling the pinch of hefty repayments as most banks have raised their lending rates by as much as 15 per cent.
From a low of 12.5 per cent, most institutions have increased their rates to about 30 per cent in response to the Central Bank of Kenya’s Monetary Policy Committee decision to raise its base lending rate (CBR) from 8.50 per cent to 10 per cent since June, to stem the shilling’s depreciation against the dollar.
The rates had been stable at 15.4 per cent in the past 12 months, having dropped from 16.91 per cent in July 2014.
Source: Daily Nation