The Central Bank of Kenya (CBK) will intensify physical inspections of banks to expose lenders in breach of the new loan pricing model, setting the stage for daily fines to lenders that fail to lower credit in response to policy changes.
The banking regulator reckons that the new model, which is based on a single rate determined by average interbank rates, will make it easier to clamp down on banks that fail to transmit policy changes in the pricing of their loans.
