Lifting of cap on interest rates could boost Kenyan stocks as much as 15%
There is scope for more gains on Africa’s best-performing stock market of the past decade
09 January 2020 - 17:30
Nairobi — The removal of a cap on Kenyan bank loan interest rates should help the sector spur gains of as much as 15% for the country’s stocks in the first half of 2019, according to local analysts.
The November repeal of a law imposing a ceiling of four percentage points above the benchmark rate will allow banks to “price loans based on the credit risk of borrowers and thus benefit from higher net interest margins”, said Nairobi-based Cytonn Investments Management CEO Edwin Dande...
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