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27 banks snub new central bank loans pricing formula
Kenya Bankers Association (KBA) director of research and policy, Samuel Tiriongo speaks during the launch of the 2023 Kenya banking industry report on June 6, 2023.
Nearly three-quarters of banks have snubbed the use of the new risk-based pricing formula introduced by the Central Bank of Kenya (CBK), denying customers a more transparent reference rate to assess the cost of borrowing.
An analysis of commercial bank lending rates established that 27 out of 37 banks have opted for the Central Bank Rate (CBR) as their key reference rate, with only a minority adopting Kesonia as their benchmark.
