Kenyan bank staff will no longer enjoy cheaper loans under new CBK pricing model
- The Central Bank of Kenya has scrapped preferential borrowing terms for bank employees.
- The new risk-based pricing model will increase borrowing costs for insiders who previously enjoyed cheaper credit.
- Only foreign-currency-denominated and fixed-rate loans will be exempt from the new pricing formula.
The Central Bank's decision to eliminate preferential borrowing terms for bank employees could lead to dissatisfaction among staff and may impact talent retention in the banking sector. While aiming for fairness, the move might create a more competitive environment that could deter skilled workers from joining or remaining in the industry.
