Reprieve for borrowers as new pricing tool forces banks to cut rates

The Monetary Policy Committee (MPC), a key policy-making organ of the Central Bank of Kenya (CBK), has published a new loan pricing tool, which could see lending rates drop.

This would be a major reprieve for those seeking credit as they will be able to window-shop and negotiate for cheap loans. Although those already servicing old loans will not benefit, borrowers seeking for new loans at floating rate will benefit from the new arrangement. Customers will also be able to compare what rates different banks are loading onto the Kenya Bank Reference Rate (KBRR), the new benchmark rate introduced by CBK.