Banks pressured to reveal average risk premium in loans

Agusto & Co Limited Managing Director Yinka Adelekan. 

Photo credit: Lucy Wanjiru | Nation Media Group

A credit rating firm wants the Central Bank of Kenya (CBK) to compel commercial banks to publicly disclose the average risk premiums on their loans under a new credit pricing model.

Augusto & Co, one of four local rating agencies, wants Kenyan banks to publish the average of their risk premium — labelled as ‘K’ — in addition to the base lending rate recently unveiled by the CBK.

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