KBA’s cost of credit calculator doesn’t reflect market realities

KBA chief executive Habil Olaka (left) and KCB chief executive Joshua Oigara at the launch of the credit calculator in July 2014. FILE PHOTO | NMG

In yet another effort to address the thorny issue of the cost of credit in Kenya, the Central Bank of Kenya and the Kenya Bankers Association have recently partnered to launch an online portal that allows borrowers to compare the cost of credit from commercial and microfinance banks.

Dubbed the Cost of Credit Calculator, the website seeks to give borrowers an estimate of the total cost of credit (TCC) arising from a consolidation of the fair estimate of each lender’s interest rates, bank charges and fees as well as third-party costs that are specific to each product.

PAYE Tax Calculator

Note: The results are not exact but very close to the actual.