- Proposal would tie all lending to the Central Bank Rate as single reference point
- Commercial lenders favour a Kenya Base Rate linked to interbank funding costs
Nairobi, Kenya – The Central Bank of Kenya wants to replace the risk-based credit pricing model introduced in 2019 with the Central Bank Rate, arguing that widespread abuse of the existing framework has pushed up borrowing costs and shut out credit-worthy customers. A working paper released this week says the current system allows banks to levy “unrealistic lending prices,” with some institutions applying blanket rates to entire customer segments rather than individual risk profiles.
This article is free to read.
Sign up for free or sign in to continue
reading. Unlike our competitors, we don't force you to pay
to read the news but we do need your email address to
make your experience better.
Create your free account or sign in
