Evolution of Kenya base lending rates over the years

The Central Bank of Kenya (CBK) Governor Dr Kamau Thugge during an interview at his office along Haile Selassie Avenue, Nairobi on June 21, 2024. 

Photo credit: Wilfred Nyangaresi | Nation Media Group

Last week, the Central Bank of Kenya (CBK) published the revised risk based pricing model for bank loans, which is expected to remove opacity in the costing of loans for borrowers.

The model uses the overnight interbank rate as the basis for a common reference rate for all variable rate bank loans.

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Note: The results are not exact but very close to the actual.