The Central Bank of Kenya (CBK) has rejected a request to exempt loans to commercial bank staff, short-term working capital financing, and credit card facilities from the new risk-based pricing formula, signalling higher interest costs for those borrowers who previously enjoyed preferential interest rates.
In the new model, the CBK has only exempted foreign currency-denominated loans and fixed-rate facilities from the new pricing model, which will be fully operational for all affected facilities by March 2026.
