• Login
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
  • Home
  • News
    • General
    • Political
  • Economy
  • Business
    • Agribusiness
    • Aviation
    • Banking & Finance
    • Energy
    • Insurance
    • Manufacturing
    • Markets
    • Maritime
    • Real Estate
    • Tourism
    • Transport
  • Technology
    • Telecom
    • Cyber-security
    • Cryptocurrency
    • Tech-guide
    • Social Media
  • Features
    • Interviews
    • Opinions
  • Reports
    • Banking/Finance
    • Insurance
    • Budgets
    • GDP
    • Inflation
    • Central Bank
    • Sec/Gse
  • Lifestyle
    • Sports
    • Entertainment
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video
No Result
View All Result
No Result
View All Result
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
No Result
View All Result
Home Business Banking & Finance

Kenyan Banks Eschew Government Debt in Favor of Private Lending

1 year ago
in Banking & Finance, highlights, Home, home-news, latest News
1 min read
0 0
0
39
VIEWS
Share on FacebookShare on TwitterShare on Linkedin

Kenyan Banks Eschew Government Debt in Favor of Private Lending

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.

Three-month Treasury bills are still yielding close to 16% even after the Central Bank of Kenya surprised markets by dropping its benchmark interest rate for the first in more than four years.

The high interest rates coincide with approval for banks to roll out risk-based pricing that will allow them to mark up interest rates for riskier borrowers, according to Ronny Chokaa, a senior research analyst at Nairobi-based AIB-AXYS Africa. In addition, there had been an over-concentration in public debt, with some banks holding as much as 30% of their total assets in those securities.

“Those two factors gave banks a wider scope to trim down their holdings because they can get bigger yields on a smaller portfolio, while deploying the rest to lending,” Chokaa said.

Investors have also spurned long-dated securities as sovereign risks climb. Kenya had little option but to ditch plans to introduce tax measures after deadly protests that left at least 61 people dead. That’s raised concerns about its ability to repay its debt while meeting the needs of its citizens.

RelatedPosts

Top 10 African Countries With the Strongest Currencies in August 2025

How Crypto Engagement is Finding a Place in Everyday African Life

Cyber Security Authority Warns of Rising Google Maps Brand Impersonation Scams

Shifting Focus

NCBA Chief Executive Officer John Gachora said the lender is already the biggest lender to the government and would now be making more cash available to other customers.

“With the changing interest rates, we obviously don’t have the liquidity to put more into government securities,” he said. “We are using a lot of our liquidity to support our customers.”

The lender’s aggressive branch expansion will likely increase its deposit base and customer demand for loans, Sterling Capital said in a research note.

NCBA posted a 5% rise in profit in the six-month period, compared with KCB Group, whose net income skyrocketed 87%. KCB too intends to shift focus away from the government to fund other areas, Chief Finance Officer Lawrence Kimathi said.

Source: bloomberg
Via: norvanreports
Tags: government debtKenyan BanksKenyan Banks Eschew Government Debt in Favor of Private LendingPrivate Lending

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

I agree to the Terms & Conditions and Privacy Policy.

No Result
View All Result

Highlights

Fuel Prices to Rise From Monday Despite Fall in Global Oil Prices

Alcaraz Dominates to Reach Fourth Round at US Open; Rybakina Advances as Raducanu Falls

CHAN 2024: Senegal Edges Sudan on Penalties to Claim Third Place

Lands Minister Initiates Repeal of L.I. 2462 to Protect Reserves and Combat Galamsey

Ghana Link Assures Stakeholders of Major ICUMS Upgrade to Address Downtime Concerns

Troubled Manchester United Boss Amorim Contemplates Future After Grimsby Debacle

Trending

Business

Top 10 African Countries With the Strongest Currencies in August 2025

August 30, 2025

Top 10 African Countries With the Strongest Currencies in August 2025 In an interconnected world where economies...

How Crypto Engagement is Finding a Place in Everyday African Life

August 30, 2025

Cyber Security Authority Warns of Rising Google Maps Brand Impersonation Scams

August 30, 2025

Fuel Prices to Rise From Monday Despite Fall in Global Oil Prices

August 30, 2025

Alcaraz Dominates to Reach Fourth Round at US Open; Rybakina Advances as Raducanu Falls

August 30, 2025

Who we are?

NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World

NorvanReports is a unique data, business, and financial portal aimed at providing accurate, impartial reporting of business news on Ghana, Africa, and around the world from a truly independent reporting and analysis point of view.

© 2020 Norvanreports – credible news platform.
L: Hse #4 3rd Okle Link, Baatsonaa – Accra-Ghana T:+233-(0)26 451 1013 E: news@norvanreports.com info@norvanreports.com
All rights reserved we display professionalism at all stages of publications

No Result
View All Result
  • Home
  • Business
    • Agribusiness
    • Aviation
    • Energy
    • Insurance
    • Manufacturing
    • Real Estate
    • Maritime
    • Tourism
    • Transport
    • Banking & Finance
    • Trade
    • Markets
  • Economy
  • Reports
  • Technology
    • Cryptocurrency
    • Cyber-security
    • Social Media
    • Tech-guide
    • Telecom
  • Features
    • Interviews
    • Opinions
  • Lifestyle
    • Entertainment
    • Sports
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
NORVANREPORTS.COM | Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.