The Auditor-General has flagged cash-strapped Consolidated Bank of Kenya for multiple management breaches, including faulty pricing of loans and reliance on an obsolete information system.
The State-owned bank's loan pricing model is reliant on data last updated five years ago, exposing the lender to inaccurate assessment of risk premium to charge when coming up with the final price of credit to borrowers, noted the Auditor-General in a review of the lender's financial statements for the year to December 2024.
