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No more hidden fees as CBK moves to enforce new loan pricing model

Central Bank of Kenya Governor Kamau Thugge. [Boniface Okendo, Standard]

The Central Bank of Kenya (CBK) has introduced a new loan pricing system that will change how borrowers pay interest on loans in a significant move to make lending by commercial banks more transparent and responsive.

The new rules take effect on September 1, 2025, for all new variable-rate loans. Existing variable-rate loans will transition to the new system by February 28, 2026.

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