CIB Kenya Announces Implementation of the Revised CBK Risk-Based Credit Pricing Model Using KESONIA as the New Reference Rate
CIB Kenya has announced the rollout of the revised Risk-Based Credit Pricing Model in full alignment with the Central Bank of Kenya (CBK) requirements. The Bank’s Board has approved the adoption of the Kenya Shilling Overnight Interbank Average (KESONIA) as the new benchmark rate for pricing Kenya Shilling (KES) variable-rate loan facilities.
This strategic transition reflects CIB Kenya’s commitment to enhancing transparency, strengthening risk-based pricing practices, and ensuring full compliance with regulatory guidelines issued by the CBK.
Implementation Timeline
• Effective 1 December 2025: All new KES variable-rate loan facilities will be priced using the KESONIA benchmark rate. Where KESONIA cannot practically apply, pricing will default to the Central Bank Rate (CBR) as determined and published by the Monetary Policy Committee (MPC).
• Effective 28 February 2026: All existing KES variable-rate loan facilities will transition to the revised pricing model.
CIB Kenya confirmed that all impacted customers will receive prior communication and assured that the Bank has implemented all necessary measures to ensure a smooth and transparent transition. The Bank’s teams will remain available to provide support and respond to customer inquiries throughout the process.
This development underscores CIB Kenya’s continued efforts to strengthen its credit risk framework and align with international best practices in financial services.
