Kenyan banking industry on edge as cash reserves decrease
While American banks started collapsing when the Federal Reserve started raising rates, Kenyan lenders have mostly remained stable since the Central Bank Rate (CBR) was hiked 250 basis points over the last one year, but cracks are beginning to show. Lenders liquidity position has dipped to 49.9 percent in the three months this year, from 50.8 percent at the end of December according to the Central Bank of Kenya (CBK) first quarter credit survey. CBK’s Banking Supervision report also shows that commercial banks hit record high borrowing of Kes147 billion from CBK, the lender of last resort to maintain liquidity requirements taking up about Kes40…
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