Absa Bank Kenya is the latest major lender to adopt the Central Bank of Kenya's (CBK) Revised Risk-Based Credit Pricing Model (RBCPM), effective December 1 for new loans. This move aligns with the CBK's push for greater transparency in loan pricing and comes as financial institutions race to meet a year-end deadline.

• All new local-currency variable-rate loan facilities processed from December 1, 2025 will use the revised model, based on the Central Bank Rate (CBR) plus a customer-specific risk premium.
• Absa joins KCB Group as the second major bank to publicly commit to the new system, following frustration expressed by CBK Governor Kamau Thugge over slow adoption.
• Existing variable-rate loans at Absa will transition to the new model by February 28, 2026, with the bank promising full disclosure of all applicable fees and total credit costs.