A landmark overhaul of how bank loans are priced took effect from September 1, 2025, with the Central Bank of Kenya (CBK) replacing the well-known Central Bank Rate (CBR) with a new market-based benchmark.
This change, detailed in a revised Risk-Based Credit Pricing Model (RBCPM), will fundamentally alter the landscape for banks and borrowers alike, introducing a more dynamic but potentially volatile interest rate environment.
