All banks adopt new loan pricing formula for Kenyan shilling loans

KCB leads rollout of new loan pricing

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.

Absa joins race to adopt new loan pricing model

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.

Christmas comes early for borrowers as banks cut loan rates

Kenyan borrowers are set to benefit from reduced loan rates as three major banks, including Equity Group and KCB Group, have cut their base lending rates following a directive from the Central Bank of Kenya (CBK). This move aims to boost consumer spending ahead of the upcoming Christmas and New Year holidays.

Why banks are pushing for lower PAYE

The Kenyan banking industry is advocating for a reduction in pay as you earn (PAYE) tax bands, proposing to increase the minimum taxable income to Sh30,000 from the current Sh24,000.