The Kenya Bankers Association has endorsed the Central Bank's revised risk-based credit pricing model, a new reference in determining the interest rates on loans issued by commercial banks.
In a statement on Wednesday, September 3, the Association said the change will facilitate greater access to bank credit for both individuals and businesses, further enhancing the banking sector's capacity to support Kenya's economic growth.
While acknowledging the significance of the new loan pricing model, the bankers noted that the framework would promote transparency by requiring banks to disclose all the components that make up interest rates.
According to the bankers, through transparency, borrowers would be able to have a clear and comprehensive understanding of loan interest rates before applying for credit.
