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Absa Bank Kenya has announced plans to transition all its loan products to a new Central Bank–mandated Risk-Based Credit Pricing Model (RBCPM), beginning December 1, 2025.
The move aligns the lender with guidelines issued by the Central Bank of Kenya (CBK) aimed at standardizing how banks price credit according to customer risk profiles.
Under the new framework, all new local-currency variable-rate loans issued from December 1, 2025, will be priced using a formula that incorporates a common reference rate and a customer-specific premium.
Absa said the reference rate will be the Central Bank Rate (CBR), as determined by the CBK’s Monetary Policy Committee, while the premium will vary depending on factors such as the borrower’s risk profile.
For existing loan facilities, the bank stated that all variable-rate loans with offer letters issued before December 1, 2025, will continue under their current terms until February 28, 2026.They will thereafter transition into the revised pricing framework in line with CBK timelines.
Absa emphasised that the shift is part of its commitment to transparency and fair customer treatment, adding that all fees, charges and the total cost of credit will continue to be fully disclosed.
“We remain deeply committed to supporting our customers achieve their growth ambitions and write their success stories, through responsible lending,” Absa said in a notice.
Customers seeking clarification have been advised to contact their relationship managers, visit any Absa branch, or call the bank’s 24-hour contact centre.
