2014-07-10 | 1770274296

Microfinance Banking Circular No 1 of 2014 - Operationalization of Kenya Banks' Reference Rate (KBRR)

The Central Bank of Kenya has introduced a new transparent credit pricing framework, the Kenya Banks' Reference Rate (KBRR), which is also applicable to microfinance banks. The KBRR has been set at 9.13% effective July 8, 2014, and microfinance banks are expected to price their flexible rate loans using this base rate, with the final interest rate to customers being KBRR + a deviation factor. The new framework aims to increase transparency in credit and mortgage pricing and will be implemented gradually, with existing flexible credit facilities transitioning to the new framework by June 30, 2015.

Kenya

Central Bank of Kenya

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