Kenyan Banks Eschew Government Debt in Favor of Private Lending
- Roll-out of risk-based loan pricing promises better returns
- Investors are buying short-term paper as sovereign risks climb
An Equity Group Holdings Plc bank branch in Nairobi.
Photographer: Patrick Meinhardt/BloombergThis article is for subscribers only.
Kenyan banks are cutting back their investment in government securities even with Treasury returns lingering at record highs.
During the first half ended in June, Standard Chartered Bank Kenya Ltd. slashed its holdings of government debt by 10%. Equity Group Holdings Plc, the nation’s biggest lender by value, cut its stock by 5% between January and June, while KCB Group Plc and NCBA Group Plc dropped 1.5% and 1.1% respectively.