Kenya: Cost of Credit Platform to Give Borrowers Wider Choice

May 31, 2017 | Daily Nation; All Africa

The Central Bank of Kenya (CBK) and Kenya Bankers Association (KBA) have set up a website on which all banks will publish the cost of their credits to resolve the information asymmetry faced by customers.

Banks will from next week publish information on the cost of credit for personal loans and mortgages on a common web platform, making it easier for customers to choose between lenders when seeking credit. The Central Bank of Kenya (CBK) and Kenya Bankers Association (KBA) have set up a website (www.costofcredit.co.ke) on which all banks will publish the annual percentage rate (APR), loan repayment schedule and any additional cost of credit on their loans. CBK governor Patrick Njoroge on Tuesday said the website has been running on a pilot basis, where it has only been accessible to banks, but will be made available to the public next week. "This will resolve the information asymmetry that customers have been having on the pricing of loans by different banks. It will afford them a way of window shopping for loans before they go to a bank," said Dr Njoroge. "Initially this will cover personal loans and mortgages, with other types of credit to follow," he said. Read more on All Africa. Source: All Africa