Adopt flexibility in CBK’s planned loan pricing model

Most Kenyan borrowers are unhappy with the unclear loan pricing, hidden fees, and sudden interest rate changes.

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The Central Bank of Kenya (CBK) recently opened a critical conversation with Kenyans regarding the future of loan pricing. CBK conducts public consultations to evaluate its plan for establishing a standardised system that enhances lending rate transparency.

While this initiative promises to increase transparency in the banking sector, it has also sparked concerns among major industry players, including the Kenya Bankers Association (KBA), who fear a possible regression into an interest cap-like environment.

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