NAIROBI, Kenya — Diamond Trust Bank (DTB) and Equity Bank have announced changes to the pricing of existing Kenya shilling variable-rate loans, aligning their facilities with the Central Bank of Kenya (CBK)’s Revised Risk-Based Credit Pricing Model (RBCPM).
In separate public notices, the two lenders said outstanding loan facilities issued on or before 30 November 2025 will, from 28 February 2026, be priced using the Central Bank Rate (CBR) plus a customer-specific risk premium, replacing bank-specific reference rates previously used.
DTB said it adopted the revised model for local-currency variable-rate loans in line with CBK guidelines, noting that the changes will apply only to the outstanding portions of qualifying facilities. “Facilities will be priced using the Central Bank Rate (CBR) plus a customer-specific Risk Premium (K), reflecting the borrower’s risk profile and other applicable components,” the bank said.
Equity Bank issued a similar notice to customers, confirming that all existing KES variable-rate loan facilities will transition from the Equity Bank Reference Rate (EBRR) to the CBR from the same date.
Under the revised structure, the loan interest rate will be determined as CBR plus a customer-specific premium, with periodic adjustments reflecting movements in the CBR as published by the CBK.
The changes follow the CBK’s implementation of the revised Risk-Based Credit Pricing Model, which took effect on 1 December 2025. The framework requires banks to anchor variable-rate lending on the CBR while transparently disclosing the additional risk premium applied to individual borrowers.
CBK has argued that the revised model is intended to enhance pricing transparency, comparability, and fairness in the credit market by limiting discretion in the setting of reference rates and strengthening consumer protection.
Under the framework, lenders must clearly disclose all applicable fees, charges, and the total cost of credit, in line with regulatory requirements.
DTB said it remains committed to transparency, responsible lending, and fair treatment of customers, adding that all charges will continue to be fully disclosed.
Equity Bank similarly assured customers of support during the transition and advised borrowers to seek clarification from relationship managers or branch offices.
