The Central Bank of Kenya will now publish the average lending rates by local banks on its website.
This comes at a time when most local banks have failed to heed to the regulator’s average lending rate despite being urged to lower the current high rates to be in tandem with the regulator's.
This latest move by the CBK is meant to promote transparency in pricing of credit by the commercial banks.
The declaration reads that the Central Bank of Kenya has decided to publish the average lending rates for various loan products by banks as well as the overall average weighted lending rates by the commercial banks.
The publication of average lending rates for commercial banks is expected to increase transparency and enable the borrowing public to making informed decisions, says the announcement.
High rates charged by commercial banks have been cited as one of the factors that contribute to slow growth of small and medium scale businesses, with some banks charging as high as 24 per cent while others charge as low as 17 per cent.
Now those seeking loans from commercial banks can get information on the regulator's website.