The Central Bank of Kenya (CBK) has launched a revised Risk-Based Credit Pricing Model to lower interest rates and align with global best practices, following extensive stakeholder feedback.

• CBK will now use the Interbank Rate as the benchmark for loan pricing instead of the Central Bank Rate (CBR).
• Matu Mugo, Director of Bank Supervision, emphasized improvements made based on 45 responses from various stakeholders.
• The final lending rate combines the interbank rate, a premium for bank costs and risks, and additional fees, with a new six-month transition period for banks.