If you have an existing bank loan, you have probably received a notice explaining changes in how your interest rate is calculated. This follows the Central Bank of Kenya (CBK) overhaul of the credit-risk pricing framework commercial banks will use to determine lending rates. The first phase of the changes took effect in September last year, with the final transition completed in February this year.
Under the new framework there are two benchmark rates. The first is the Kenya Shilling Overnight Interbank Average Rate (Kesonia).
