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Originally published by Techish Kenya
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November 26, 2025
1d ago

KCB new loan pricing rolls out as banks start shifting to CBK’s new risk-based lending model

KCB new loan pricing rolls out as banks start shifting to CBK’s new risk-based lending model

KCB Bank has rolled out a new way of calculating interest on loans, becoming the first major bank in Kenya to adopt the Central Bank of Kenya’s revised..

✨ Key Highlights

KCB Bank has become the first major bank in Kenya to implement the new Central Bank of Kenya’s Risk-Based Credit Pricing Model (RBCPM), fundamentally changing how loan interest rates are calculated.

  • Loan interest rates will now depend on a combination of KESONIA (Kenya Shilling Overnight Interbank Average) and a personal risk score represented by “K”.
  • A borrower's personal financial behavior, including income stability, repayment history, and existing debts, will significantly influence their loan affordability and approval.
  • Existing variable-rate loans will migrate to this new system by February 28, 2026, while all new variable-rate loan applications will use it from December 1, 2025.

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