CBK fined 33 commercial banks in 2025 for failing to reduce lending rates in line with cuts to the Central Bank Rate (CBR), following inspections across all 38 lenders. Between August 2024 and August 2025, CBK lowered the benchmark rate by 3.5 percentage points to 9.5%, but most banks did not pass on the benefits to borrowers.
CBK conducted target inspections in 2025 on implementation of the Risk-Based Credit Pricing Models (RBCPM) rolled out in 2019 by all commercial banks. Following the inspections, penalties were levied on 33 banks, and administrative actions were taken CBK conducted target inspections in 2025 on implementation of the Risk-Based Credit Pricing Models (RBCPM) rolled out in 2019 by all commercial banks. Only three banks were found compliant with the new RBCPM.
However, the regulator did not name the specific banks that were fined, how much they were fined, or which banks were compliant.
CBK had warned banks of penalties of up to Ksh20 million or three times the gains from overcharging customers, alongside additional daily fines.
