Big banks on the spot over bad loans, profit reporting

Kenyan banks have been overstating their profits and under-providing for bad loans by large margins even as public anger rises against the “super profits” they make from their clients, a newly released report says.   

Failure to observe international accounting standards (IAS) has left wide gaps in the financial services market that many banks are using to disproportionately blow up their earnings, says the report by Citi Group.