CBK Fines 33 Kenyan Banks for Loan Pricing Breaches
Kenya's central bank penalised 33 institutions for violating credit pricing rules, affecting loan costs.
Key points
- 33 Kenyan banks received financial penalties for loan pricing violations.
- 35 banks breached banking regulations in 2025, up from 11 in 2024.
- Most violations involved the Risk-Based Credit Pricing Model framework.
The Central Bank of Kenya fined 33 commercial banks for loan pricing breaches. The regulator found widespread violations of banking regulations in its recent review.
These penalties follow inspections that revealed most breaches involved credit pricing models. The findings affect how banks calculate interest rates for borrowers.
Regulatory violations increased sharply
Thirty-five banks violated the Banking Act as of December 31, 2025. This number rose from 11 banks a year earlier, according to the regulator.
The central bank imposed financial penalties on 33 institutions. Two others faced administrative action for similar compliance failures.
Ten banks breached the single obligor lending limit. Seven failed to maintain the required minimum core capital level.
Credit pricing model failures
Most violations concerned the Risk-Based Credit Pricing Model. This framework links loan prices to bank costs and borrower risk.
Five banks missed the 14.5 percent capital adequacy ratio. Four failed to meet the 10.5 percent core capital ratio requirement.
Three banks allowed individual shareholdings to exceed the 25 percent limit. These governance breaches added to the list of regulatory failures.
Borrower impact and model scope
The revised model applied to new variable-rate loans from September 1, 2025. Existing loans had to transition by February 28, 2026.
