CIB Kenya Announces Transition of Existing Facilities to Revised Risk-Based Pricing Model for Variable-Rate Loans
CIB Kenya has announced the transition of all existing Kenya Shilling variable-rate loan facilities to a revised risk-based credit pricing framework, in line with regulatory requirements set by the Central Bank of Kenya.
The bank confirmed that all new Kenya Shilling variable-rate facilities have been onboarded under the updated framework since December 1, 2025, with existing facilities set to migrate fully to the revised model by February 28, 2026.
Effective March 1, 2026, KESONIA or the Central Bank Rate (CBR) will serve as the reference rate for pricing all applicable variable-rate loans. Interest will be calculated by adding a customer-specific risk premium to the benchmark rate, reflecting each borrower’s credit risk profile in accordance with regulatory guidelines.
CIB Kenya also noted that the Total Cost of Credit will incorporate the reference rate, the applicable risk premium, and all approved fees and charges, ensuring full transparency and disclosure to customers.
The bank emphasized that the transition will not introduce additional fees for existing customers, except for charges already mandated for new facilities issued from December 2025. It added that all necessary measures have been implemented to ensure a smooth transition process while maintaining clear communication and customer support throughout.
