The Kenyan banking sector is about to face a major change as the Central Bank of Kenya shifts all variable-rate new loans to a single reference rate called the Kenya Shilling Overnight Interbank Average, alias KESONIA. The move, aimed at modernizing the country’s benchmark interest rate framework, promises more transparency, fairness, and predictability in lending. Effective September 1, 2025, CBK introduced the revised Risk-Based Credit Pricing Model, providing that all new variable-rate loans should be priced based on KESONIA. However, many banks negotiated a 3-month grace period to update their systems and obtain board approvals for full implementation of the The post KESONIA Explained: How Kenya’s New Loan Benchmark Affects Your Borrowing appeared first on Nairobi Wire.