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Kenya's `Own Goal' Seen Depressing Bank Stocks Until Vote

  • Kenyan bank shares dropped an average of 14% in January
  • Consolidation, job cuts and bank failures possible in 2017
Updated on

Kenyan banks will probably have to cope with interest-rate caps that have dented earnings and curbed lending until after elections, adding to pressure on their stocks after the worst January in at least five years. 

The 11 listed Kenyan banks dropped an average of 14 percent in January, with KCB Group Ltd., Equity Group Holdings Ltd. and HF Group Ltd. leading the decline. Caps on the amount banks can charge for loans, introduced in September, are being blamed for the slump.