CBK revises risk-based pricing model, lets banks set lending rates

The Kenya Bankers' Association says that its customers can now expect more transparency and clear disclosures in the new credit pricing model. The move follows the central bank of Kenya’s directive aimed at finalizing the transition to a new risk-based credit pricing framework, a move that is expected to significantly alter how banks price loans and interact with borrowers. This would mark a shift from the long-standing central bank rate to a market-driven interbank rate as the primary benchmark for loan pricing.