Banks may be forced to set rates based on risk after rate cap repeal

Central Bank of Kenya (CBK) Governor Patrick Njoroge addressing the press at his office. [Beverlyne Musili/Standard]

Banks may be compelled to charge customers different interest rates on loans instead of lumping products at one rate.

Central Bank Governor Patrick Njoroge said lenders had to understand the viability of the projects they were funding and must assign rates to a borrower, a move that could bring credit reference bureau profiles to the heart of lending.