Nairobi, April 23 -- Banks are charging a premium of up to 16.57 percent on personal loans before fees and other charges, revealing a wide gap in how lenders determine factors like costs and customer risks amid a change in the pricing formula.

The average premium applied to personal loans ranges between 4.11 percent and 16.57 percent, a difference of 12.46 percentage points as per an analysis of current data published on the total cost of credit website.

Banks transitioned fully to the new pricing framework at the end of February 2026 and have been obligated to adopt either the Central Bank Rate (CBR) or the Kenya Shilling Overnight Interbank Average (Kesonia) as the benchmark for pricing loans.

Lenders previously lacked a uniform benc...