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Originally published by The Standard Business
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January 5, 2026
3d ago

Big banks predict fall in borrowing costs under new CBK pricing model

Big banks predict fall in borrowing costs under new CBK pricing model

The model perceived to be a transparent loan pricing formula is expected to automatically reduce lending costs when policy eases.The will also model will strengthen monetary policy...

✨ Key Highlights

The chief executives of Kenya's two largest banks anticipate a decline in borrowing costs for customers. This change is expected as a new Central Bank of Kenya (CBK) loan pricing system becomes fully effective from March of this year.

  • The new pricing model aims to improve transparency and monetary policy transmission.
  • The Central Bank of Kenya (CBK) is the primary organization involved in this new loan pricing system.
  • The full effect of the new system is set to begin in March.

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