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Borrowers are paying less for loans, new Central Bank of Kenya (CBK) data shows, as a new pricing system takes effect and passes on recent interest rate cuts.
The average lending rate across Kenya’s 38 banks fell to 14.8 per cent in December 2025 from 15.24 per cent in July last year, the CBK data shows. The decline follows the December 1 introduction of a revised Risk-Based Credit Pricing Model (RBCPM), designed to make pricing more transparent and responsive to monetary policy.
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