Central Bank

Kenyans have a huge opportunity to set the price of their savings as banks, desperate for cash, lure deposits in a market with very competitive options. Deposit rates have jumped to 7.8 percent in June, a five year high as Banks scrambled for investors to deposit money in their accounts to facilitate their fractional lending. Fractional Banking is a banking system that requires banks to hold only a portion of the money deposited with them as reserves. The banks then use the customer deposits to make new loans. For a long time Banks have been holding the upper hand given the healthy supply of money…