Bankers pressure CBK to approve risk-based loans

The Central bank of Kenya, Nairobi on Sunday, November 22, 2020. PHOTO | DENNIS ONSONGO | NMG

Banks have asked the Central Bank of Kenya (CBK) to approve risk-based lending more broadly, noting the current situation gives little incentive to institutions to expand credit to riskier customers.

Kenya scrapped legal controls of credit charges on November 7, 2019. Banks were, however, stopped from re-pricing loans after the CBK stepped in administratively, requiring them to file new formulas for lending that have to be vetted.

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