Region

Jurisdiction

Regulator

2015-07-08

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 8.54 percent to 9.87 percent, effective July 7th. All microfinance banks in Kenya are required to use this rate as a base for their flexible-rate loans. This revision follows a decision by the Monetary Policy Committee to increase the Central Bank Rate (CBR) from 10.0% to 11.5%. Banks must disclose their additional risk premiums above KBRR to customers and report these to CBK. The CBK will continue working closely with banks and stakeholders to facilitate implementation of this framework and disseminate information on the same.

Kenya

Central Bank of Kenya