In May 2016, I wrote a letter to NIC Bank through its customer care center and copied Arnold Chepkonga inquiring about amendment in interest rate and overall pricing of the two facilities

Together with the bank, we co-own KBV334*- under account -100175661* and KCE 191* under account 100305917*.

Following the assent of the Banking (Amendment) Bill, 2016, other bank accounts I held with other banks complied with the legislation on the administration of credit facilities, including the Consumer Protection Act, 2012 bearing in mind on the CBK base rate which was at 10.5% then, per annum with a margin of 4%.

By then all interest rate I had with the NIC Bank was maintained at the same high rate. Later they communicated to me on October 5, 2016 that they had revised their loan rate to 14% in the two facilities mentioned herein above, and notified me that the monthly installments will not change.

That only the loan tenure could and that in the event that I wished to have the monthly loan amount changed then I was to request for loan amortization in the two facilities I had with the bank.

I responded back and indicated that I would wish to maintain the monthly repayment amount so that the loan tenure could be reduced hence clearing the loan repayment earlier.

I inquired on the change of tenure in the said two facilities and they informed me that the one for KBV 334*-Acc-100175661* could not change, because of fluctuation of interest rates then and that it had bloated interest which I needed to pay, hence I was to maintain the monthly contribution and the loan tenure was not change despite reduction on interest rate.

I accepted then since I could not trace the fluctuations by then, in the other facility KCE 191*-ACC No: 100305917* NIC communicated to me vide a letter dated October 7, 2016 from one Faith Kisangani (back office operations) that they had reduced the tenure repayment period for the loan - end date from 11th September 2019 to 11th January 2019 with the constant monthly repayment being maintained at Sh82,940.

I was convinced then and monitored my account as I struggled with the repayments. On September 6, 2018, I was curious to know the current status and statement on the HP; KCE 191*-ACC No: 100305917*.

I wrote to the NIC bank through Byram Njoroge and copied Beatrice Rachilo as well as Linda Apiyo. The response was that the loan tenure was not to change and that I was to continue with the repayment up to September 11, 2018; That there were again some bloated interest due to fluctuation of the interest rates.

I disputed this and responded by copying the COFEK (This email address is being protected from spambots. You need JavaScript enabled to view it.) on this to assist me in finding out the false play by NIC Bank to robe me as a customer by not effecting the changes on my loan as a result of amendments in interest rate.

In my letter dated 10th September 2018 and a response to Mr. Obuya Felix of NIC I indicated that;

(a) I was not yet convinced with the explanation he gave me in response to my request for information on the same and that he was being economical with the truth and true facts of the matter,

(b) that however high their fluctuation of interest was prior to capping of interest rate by CBK, the bloated interest cannot be high to an equivalent standing maturity date in the loan tenure I reminded him that during our contractual agreement there was no where we agreed on calculation of bloated interest to rise almost two times the offered interest rate at the date of contractual agreement.

Yet there has never been any communication on fluctuation of interest for this loan. Subscribe to Cofek Breaking News: Send 'Cofek On' to 40408

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