Commercial banks are in talks with the Central Bank of Kenya (CBK) for an overhaul of their loan pricing models and come up with a common base lending rate amid concerns that they are not cutting interest rates in line with the decline in the Central Bank Rate (CBR).
The lenders have sent proposals to the CBK Governor Kamau Thugge, arguing that the current models are sticky and have made it difficult for them to adjust rates downwards as soon as the regulator lowers CBR.
