Banks are revising lending rates and shifting pricing of loans to the new risk-based pricing framework.
Commercial banks are also setting timelines for migrating older facilities to the common pricing framework.
Under the new loan-pricing framework, all Kenya shilling variable-rate loans are priced using the CBR as a common base.
Commercial banks have begun revising lending rates and shifting pricing of loans to the new risk-based pricing framework ahead of the February 28 deadline, with the changes coming after the Central Bank of Kenya’s latest cut of the benchmark rate to 8.75 per cent.
Notices issued this week by NCBA Bank Kenya, KCB Bank Kenya, Equity Bank Kenya and Family Bank show lenders adjusting their base rates in line with the revised Central Bank Rate (CBR), while setting timelines for migrating older facilities to the common pricing framework.
