Use credit scores to set interest on loans, CBK governor tells lenders

CBK governor Patrick Njoroge told  lenders to use credit scores to set interest on loans. [Courtesy] 

Banks should charge rates on loans based on the creditworthiness of borrowers, the Central Bank has said.

Governor Patrick Njoroge told lenders to embed credit risk pricing using consumers' credit score, adverse credit history, employment status and income before issuing loans.