The Central Bank of Kenya's Governor, Kamau Thugge, has cautioned Kenyans with poor credit histories that they risk paying higher interest rates on loans under the revised risk-based credit pricing model.
Speaking on Tuesday, September 2, during an interview with Citizen TV, Thugge noted that the new loan pricing model was not meant to lock anyone out but to streamline the banking sector. "If you are a very risky customer and you don't pay your loans on time, it is not that you are prevented from accessing credit; the credit would be there, but the price will be high," Thugge said.
The CBK Governor stated that the new credit pricing model would help lower interest rates on loans and improve competitiveness among commercial banks in the country.
The Central Bank of Kenya.
