The Central Bank of Kenya and Kenyan banks are in a state of disagreement over the CBK's base lending rate, which directly affects Kenyans' access to loans.
The dispute seemingly stems from the CBK's recent revelation of plans to move away from the Risk-Based Credit Pricing Model (RBCPM), five years after it was introduced.
To that effect, banks had to submit their suggestions to the CBK review paper on the model, with a due date set for May 2.
According to CBK Governor Kamau Thugge, the reforms are meant to address ongoing challenges such as high lending rates and unclear pricing mechanisms through the creation of a market-driven framework for credit risk pricing.
