The Central Bank of Kenya (CBK) has given commercial banks six months to implement a revised risk-based credit pricing model, aiming to stimulate economic activity and private sector credit growth. This timeframe is significantly shorter than previous implementations.

• Commercial banks must have their individual pricing models approved by their boards within three months, followed by another three months for implementation.

• CBK Governor Kamau Thugge is scheduled to meet with commercial bank chiefs next week to finalize remaining issues regarding the model.

• The Monetary Policy Committee (MPC) recently cut the Central Bank Rate (CBR) by 25 basis points to 9.50 percent, the third reduction this year.