Kamau Thugge asks banks to end ‘excuses’, cut loan rates

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

The Central Bank of Kenya (CBK) has asked banks to end excuses for failing to reduce the cost of loans in line with the reduced benchmark rate as the revised risk-based pricing regime takes effect.

Commercial banks are expected to adopt a new industry loan-pricing standard dubbed the Kenya Shilling Overnight Interbank Average (Kesonia) by February 2026 as CBK moves to align lending rates to the Central Bank Rate (CBR).

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