Kenya Commercial Bank (KCB) logo. Photo/ Courtesy.
Kenya Commercial Bank (KCB) has announced it will implement the Central Bank of Kenya’s (CBK) newly issued Revised Risk-Based Credit Pricing Model (RBCPM), with the transition set to begin on December 1, 2025.
The bank issued a public notice informing customers that all new local currency variable-rate loans taken from that date will be priced using the updated framework.
According to the notice, lending rates for new variable-rate loans will be pegged on a Common Reference Rate, combined with a customer-specific risk-based premium, referred to as “K”.
The Common Reference Rate will be aligned to the CBK policy rate under the Monetary Policy Implementation Framework.
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Existing local currency variable-rate loans will continue operating under current terms until the end of the CBK-mandated transition period, which lapses on February 28, 2026. After that, they too will shift to the revised pricing system.
KCB assured customers that all applicable fees, charges, and the total cost of credit will be fully disclosed in accordance with CBK requirements, emphasizing its commitment to responsible lending during the transition.
