2015-01-15 | 503254777

Microfinance Banking Circular No 1 of 2015 - Operationalization of Kenya Banks' Reference Rate (KBRR)

The Central Bank of Kenya (CBK) has revised the Kenya Banks' Reference Rate (KBRR) from 9.13% to 8.54%, effective January 14, 2015, until its next review in July 2015. All microfinance banks are instructed to price their flexible rate loans using the KBRR as the base rate, with the expectation that their lending rates remain as close as possible to the KBRR. This measure aims to enhance transparency in credit pricing and improve the transmission of monetary policy signals into changes in banks' lending rates.

Kenya

Central Bank of Kenya

Show thumbnail