Banks bet against President Ruto’s 10 percent interest rate prophecy
The third quarter in the banking sector may witness a significant uptick, driven by a government initiative to issue a Kes50 billion infrastructure bond scheduled for 13th November 2023. Kenya introduced this tax-free bond, which extends over six and a half years, with its coupon rate to be determined by the market. This decision followed a two-year bond that garnered only 35.1 percent of bids at 17.9 percent. Evidently, this signals the government’s openness to accept more aggressive bids, which, according to lenders constituting 45.2 percent of bond investors, may reach as high as 20 percent. The KCB Monthly Economic Brief has indicated that bankers
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