I guess it's for the same reason that traders in Kenya's "Exhibition Stalls" also don't put price tags on their products - a very annoying habit!

Nevertheless; your blanket statement is not accurate. Have a look at this website of a Kenya Bank: http://www.imbank.com/KE...r.asp?cat=interestrates

Proves you wrong, doesn't it?

Also; just look at the rate for 50k kept for one month - 14%!!!

T-Bills are at 17.5% http://www.centralbank.g...bills/manualresults.aspx

SMH. Read what @guru said.

For an extra 2% [with all the risks associated with drought, default, farmer's death, etc] why would the bank want to lend to the farmer?

If my bank [I as a major shareholder] lent to a farmer for 2% more than T-Bills [assuming the other income from the farmer is nominal] I would fire the directors! The risk is too high.

As a depositor why would you place a single penny with Equity Bank vs I&M Bank!

Compare and cry!

http://www.equitybank.co...escharges.php?subcat=20

http://www.imbank.com/KE...r.asp?cat=interestrates

Courtesy of @chiaroscuro

IMHO, the current interest rates regime should not be interfered with. With inflation at the rate at 16.7% [Feb 2012] and CBR at 18%, I don't see what Kenyans want a sane bank to charge its borrowers.

OK 30% may be on the higher side, but given the risk its is not an "immoral" proposition. My argument has always been... there should be sector specific incentives [probably discounted] that insulates production [or growth] driven borrowings from interest rates fluctuations.

For the rest of Kenyans who borrow from banks to import toys & clothing, banks should charge even more.

BTW, who said banks were making abnormal profits? W.r.t investment, and compared to other industries there is no iota of truth in this. May be they are not as efficient... but that's an argument for another day

14.5% flat rate is equivalent to 25.77% Reducing balance rate.

Equity knows how to sell to members