The Kenya Bankers Association has endorsed the Central Bank of Kenya's (CBK) revised risk-based credit pricing model, effective from September 1 to November 30, 2025. This new framework aims to increase access to credit for individuals and businesses, promoting transparency in loan interest rates.

• The new model integrates a borrower's credit history and introduces the Kenya Shilling Overnight Interbank Average (KESONIA) as the common base rate for all variable-interest loans, replacing previous reference rates.
• The Kenya Bankers Association stated that this shift is expected to significantly expand access to credit for previously underserved groups, including MSMEs, youth, persons with disabilities, and women-led enterprises.
• The variable-interest rate offered to a customer will consist of the KESONIA base rate plus a premium reflecting their individual risk profile.