KESONIA is an interbank rate publicly published by Central Bank of Kenya (CBK) in their website on a daily basis. The Bank shall use KESONIA rates as the Lending Reference Rate for variable rate Kenya Shilling Denominated loans.

The Risk-Based Credit Pricing Model (RBCPM) is a differentiated credit pricing that is determined by the customer risk profile. Borrowers with lower risk rating get better interest rates, while higher risk borrowers would get higher interest rates. Therefore, two borrowers in the same customer segment can have different pricing based on their different risk profile. 

We encourage all staff to enlighten customers on the need to bank their business sales proceeds and salaries through their accounts with us, and ensure prompt loan repayment, to improve their risk rating and in turn improve their customer pricing.

No, each bank has developed its own risk rating model based on its risk appetite and risk evaluation criteria.

The Customer Premium (K) is a variable component of the overall effective interest rate.

For new-to-bank borrowers, the effective interest rate shall be under the KESONIA model i.e. KESONIA Reference Rate plus a Customer Premium (“K”). This shall be determined by the applicable risk rating for the customer segment.

Yes, a customer with two different credit facilities e.g. asset finance and working capital, can have different rates for each facility. If the facilities are approved at different times, the customer’s risk rating can be different for the two facilities based on changes in their financials, repayment behavior among others.

Customers shall make reference for KESONIA rates from the Central Bank of Kenya (CBK) Website. Also, the Bank will publish the applicable KESONIA rate for the month on its website and applicable media platforms.

The Bank shall only issue pricing change notices to customers where the Premium (K) has changed during the regular review of the pricing model.

For Personal Loans – we will retain loan repayment schedule & adjust the tenor accordingly, unless customer requests otherwise.

For Business Loans – we will adjust loan repayment and retain the loan tenor, unless customer requests otherwise.

Existing Variable rate Kenya Shilling denominated credit facilities will transition to KESONIA-based rates by 28th February 2026. Further guidelines shall be shared in due course.

Existing facilities under concessions shall retain their effective interest rate, unless where the justification or approval conditions for the concessions have been breached.

Loans under restructure review will also reflect KESONIA plus applicable Customer Premium (K) as at the time of restructure.

Additional tranche disbursements for partially drawn facilities shall continue under existing pricing. They shall transition under existing credit facilities in February 2026. 

KMRC facilities are considered fixed rate facilities (for performing facilities).