2015-01-15

Banking Circular No 1 of 2015 - Operationalizaton of the Kenya Banks\' Reference Rate (KBRR)

This banking circular, dated January 14th, 2015, operationalizes the Kenya Banks' Reference Rate (KBRR). It sets the revised KBRR at 8.54%, effective from the same date until July 2015 or earlier if market conditions change drastically. All commercial banks and mortgage finance companies are required to price their flexible rate loans using this as their base rate, with a deviation, K, that must be transparently disclosed to both borrowers and the Central Bank. The KBRR framework will apply to all new and existing flexible/variable credit facilities by June 30th, 2015. The Central Bank of Kenya will continue working closely with stakeholders for a smooth implementation and dissemination of this framework.

Kenya

Central Bank of Kenya

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