NCBA Bank has announced a major shift in the pricing of its variable-rate Kenya Shilling loans following the Central Bank of Kenya’s (CBK) revised Risk-Based Credit Pricing Model.
The lender in a statement said the new pricing framework will take effect on December 1, 2025, and will apply to all newly issued variable-rate loan facilities.
Under the revised structure, new Kenya Shilling loans will now be priced using the Central Bank Rate (CBR) plus a Premium (“K”).
According to NCBA, the change aligns the bank with the CBK’s updated model aimed at enhancing transparency, risk differentiation and consumer protection within Kenya’s credit market.
Transition Period for Existing Loans
NCBA confirmed that existing variable-rate loan facilities will be migrated to the new pricing model by the close of business on February 28, 2026, in line with the six-month transition period mandated by the regulator.
The lender clarified that the pricing of existing fixed-rate loans remains unchanged.
Reference Rate Clarification
While the CBK’s revised model prescribes the Kenya Shilling Overnight Interbank Average (KESONIA) as the primary reference rate, NCBA’s notice cites the CBR as the benchmark for its variable-rate loans.
This suggests that the bank may be applying CBR as an approved alternative reference rate in cases where the use of KESONIA is impractical—an option permitted under the CBK guidelines.
Customer Transparency Assured
NCBA emphasised that all changes—including applicable fees, charges and the total cost of credit—will be communicated transparently to customers.
“We are committed to a smooth and transparent transition,” the bank said, assuring clients that they will receive timely updates on any revisions to their existing loan terms.
Customers seeking clarification are advised to contact their Relationship Manager, the Customer Contact Centre at 020-288 4444, 0711 056 444, 0732 156 444, or email contact@ncbagroup.com