Bank lending rates are yet to be fully adjusted in line with the risk rating of borrowers, with lenders adopting a gradual rollout to avoid shocking the credit market which is still recovering from the slowdown caused by the now repealed rate cap and Covid-19.
More than half of banks already had their risk-based models approved or signed off by the Central Bank of Kenya (CBK) by the end of July, allowing them to vary interest on credit according to the risk profile of a borrower, with an expected outcome of improved credit access across the economy.
