Nairobi News

HustleNews

Panic as banking stocks fall after lending rate cap

Kenyan bank shares fell sharply at the start of trade on Thursday after President Uhuru Kenyatta signed a law capping commercial banks’ interest rates.

Shares in KCB Group, which operates Kenya’s biggest bank by assets, fell 9.9 percent to trade at 29.50 shillings ($0.2912) per share. Shares in Co-op Bank of Kenya and Equity Bank were down by a similar margin.

Traders said there were millions of shares on offer without matching bids.

Meanwhile, the Kenya Bankers Association has said it is awaiting rules from the State to establish whether those already with loans will be affected by the new interest cap law.