KCB Group is set to implement a new risk-based loan pricing model starting December 1, 2025, making it one of the first major lenders in Kenya to comply with the Central Bank of Kenya's (CBK) directive. This move aims to increase transparency and make loan costs more responsive to monetary policy changes.

• The new pricing will apply to all new local currency variable-rate loans from December 1, 2025 and will be based on the Central Bank Rate (CBR) plus a customer-specific risk premium.
• KCB, Kenya's largest bank by assets, is an early adopter among major lenders, with the CBK having expressed frustration over slow compliance from other banks.
• Existing variable-rate loans will transition to the new framework by February 28, 2026, with full disclosure of fees and total cost of credit.