Category: East Africa
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Kenya’s central bank warns lenders over misuse of credit bureaus
Kenya’s central bank threatened commercial banks with legal action if they submit inaccurate or incomplete data to credit reference bureaus, according to a circular seen by Reuters on Wednesday. Kenyan banks have come under fire in recent weeks for the high costs they impose on borrowers. Two weeks ago, parliament passed a bill to cap…
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Kenya:Fitch Ratings says top banks to push more loans on interest capping
Large banks will protect their profit margins by pushing more loans if capping of interest rates is introduced, an international rating agency has said. Fitch Ratings noted large banks would be better placed than their smaller rivals to deal with the sharp reduction in net interest margin. “Large players, with stronger franchises and more diverse…
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Kenya:CBK puts banks on notice for abuse of credit bureaus
The central bank has put commercial banks, who are abusing credit reference bureaus (CRB), on notice that they will henceforth be subjected to tough sanctions, including heavy fines, for misuse of the information sharing tool. In a circular dated August 10, 2016 and sent to all commercial bank chief executives, the Central Bank of Kenya…
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Kenya:Chase Bank gets CBK approval to resume lending
Chase Bank will start taking fixed deposits and resume lending, signalling a quick recovery for the bank that was placed under receivership in April. The lender said it has received approval from the Central Bank of Kenya (CBK). “The move marks a major milestone in the turnaround efforts of the bank signalling that most of…
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Kenya’s finance minister gives his view on capping of banks’ lending rates
Kenya’s Treasury opposes a move by parliament to cap commercial lending rates because other measures being put in place will help bring down borrowing costs over time, the finance minister said on Tuesday. Parliament passed changes to the banking law two weeks ago to cap commercial interest rates at 400 basis points above the central…
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Kenya buys Sh3.6bn ship to battle illegal fishing in Indian Ocean
Kenya has acquired a new ship to patrol its Indian Ocean territory as the country steps up the campaign against illegal fishing which has seen it lose up to Sh10 billion annually. The Sh3.6 billion ship, which has ability to detect illegal movement of fishing vessels in Kenya’s territorial waters, is expected in the country…
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CBK injects Sh13bn into market as small banks face cash shortage
Small banks continued to struggle for cash in the money markets last week despite the sector registering healthy overall liquidity levels, forcing the Central Bank of Kenya (CBK) to inject Sh12.8 billion into the banking system in support. The CBK says in its latest weekly report that the market remained relatively liquid on account of…
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Kenyan retailer Uchumi secures cash injection
Kenya’s Uchumi Supermarkets will use a cash injection of 1.2 billion shillings ($11.83 million) from the government to repay debts owed to suppliers and stock its stores with goods, the retailer’s chief executive said on Monday. The government, which holds a 15 percent stake in the company, approved the cash injection at a cabinet meeting…
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Kenya:Petrol, diesel, kerosene prices climb on delay of cheaper July products
Prices of petroleum products increased by up to Sh2.2 per litre, driven by a delay in delivery of cheaper products that saw the prices set based on more expensive June supplies. The maximum retail prices of petrol, diesel and kerosene have all increased in the latest price review by the Energy Regulatory Commission (ERC) which…
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Kenya:More lenders plan loan rates reduction as pressure mounts
Four more commercial banks have given notice they will lower loan interest by up to a percentage point as control of lending and deposit rates looms. National Bank of Kenya, Family Bank, Bank of Baroda and Bank of Africa put out notices last Friday saying the reduction in the rates will apply from later this…