Query: For small banks, has the rate cap lowered or raised their cost of deposits and savings? For example, looking at faulu bank, who a few ago were offering upto 12.5% interest on funds deposited with them in a savings account for a duration of 3 years, I presume currently that they more or less have the same amount as other banks for deposits and savings.

they should be careful not to cause customer panic

Here we are...
Family fires it's staff https://citizentv.co.ke/...fs-to-cut-costs-143841/
and then Sidian lays off 108 workers http://www.businessdaily...9550-3428588-151f209z/,
then Ecobank collapses 9 branches http://www.businessdaily...6506-316lohz/index.html
First Community Bank let go of a quarter of its staff http://www.the-star.co.k...osed-number-of_c1451638
And now BoA closes 12 branches. Sad state of affairs http://www.businessdaily...2926-jp394sz/index.html[/quote]
Sidian, NBK, Family, HF, NIC struggling.. Small banks shall fold

@Ericsson that would be higher than the former KBRR rule

Exactly, while KBRR was 14% plus a K that was determined independently by each bank.. The capping is a game changer that will obviously hurt a few banks and many workers but in my view we should aim for single digit interest regime as happens in most developed economies, backed by a solid credit scoring system

Memo to: 'The Sky is Falling Department"

Here you go: Numbers don't lie

You are welcome

Whose interest do you protect as a banker? That of the shareholder who gives the capital, the depositor who wants you to return his money intact or that of the borrower who wants you to finance his fancy projects? If you want the single digit interest rates where is that capital that you will lend at this rate? What is the savings rate in Kenya?
Do people with good credit scores usually need risky loans

Just noticed that NIC have been crediting interest every end month on my savings account Nice. I think kitambo the amounts were to negligible to notice...