Transnational Bank to offer loans below 14 per cent – The Standard (press release)


Transnational Bank has assured its clients who have clean credit records that they will enjoy lower interest rate than the 14 per cent capped by the Central Bank.

The bank said good credit history, which include regular banking, good borrowing and repayment history would be used to reward clients.

“Customers with good credit history will enjoy lower lending rates,” said Sammy Lang’at, the bank’s chief executive officer.

The bank will also give its customers higher interest returns on their savings than the minimum most banks give.

“If your bank is not giving you more than eight per cent return, Transnational is where you need to put your savings,” Lang’at said.

The CEO said the bank had fully complied with the law capping interest rates. Speaking during the re-launch of the institution’s Nakuru Branch, Lang’at said the new-look and feel of the bank is aimed at giving more space for customers as the institution implements its 2015–2020 agribusiness strategy, which made it one of Kenya’s banks fully focused on financing agriculture.

This strategy has seen the conversion of small scale farmers and traders into fully fledged SMEs through advisory and a suite of customized financing solutions. Langat urged the government and other institutions to pay their suppliers in time to reduce loan default rates.

Former President Daniel arap Moi, who founded the bank 24 years ago, encouraged SMES to enjoy the reduced loan interest rates. Mr Moi urged residents of Nakuru and its environs to invest more in farming and agribusiness initiatives, noting that the area is best suited for agriculture.

He encouraged the bank to further lend to agriculture, which he said will stimulate the local and national economy.

“I want more aspiring business people to grow with Transnational Bank. For those eager to start or expand, this is the right time to borrow money. If you work hard in your loan repayments, you will never fear that borrowing will turn against you,” advised Mr Moi.

Part of the institution’s expansion strategy has seen 14 new branches lined up, targeting areas without banks to bring financial services closer to farmers and traders.

The bank is further developing innovative financing products in conjunction with various sponsors to ensure farmers get value chain solutions, including inputs, mechanisation, reduction of post-harvest losses and access to market. Lang’at promised that the bank’s shares will soon be available to the public.

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