NAIROBI, Kenya— The National Bank of Kenya (NBK), a subsidiary of Access Bank, has announced a major change in its loan pricing policy, transitioning from the traditional NBK Base Rate to a new Risk-Based Credit Pricing Model.
The lender says the move aims to align its lending framework with market-driven interest rate mechanisms that reflect individual borrower risk profiles.
In a public notice , the bank stated that all loans currently priced off the NBK Base Rate will now adopt a new structure based on an NBK Reference Rate of 12.9% plus a risk premium.
This means that different borrowers will pay varying interest rates depending on their creditworthiness and associated risk level.
The implementation of the new pricing model will take effect in two phases: new loans issued from August 1, 2025, will immediately fall under the new structure, while existing loans will transition starting September 1, 2025.
“This new pricing model will apply to all loans currently priced off the NBK Base Rate,” the notice read in part.
The bank assured clients that the transition will be managed smoothly and in line with regulatory guidelines.
Risk-based pricing is commonly used in advanced financial markets to ensure that borrowers are charged interest rates that accurately reflect their risk of default, encouraging more responsible lending and borrowing practices.
NBK also used the opportunity to promote its insurance arm, NBK Bancassurance Intermediary, urging customers to “secure your future with NBK Bancassurance Intermediary, from health to income, we’ve got you covered.”
According to the bank,the shift is expected to enhance transparency, reduce defaults, and strengthen NBK’s position in a competitive banking sector.
