Banks liquidity improves as high returns attract deposits

The Central Bank of Kenya in Nairobi.

The Central Bank of Kenya in Nairobi. PHOTO | FILE | NMG

Photo credit: File | Nation Media Group

Money available to banks for investments and lending has increased as deposits rise on improved interest rates, coming after the Central Bank of Kenya (CBK) rate hikes that drove up returns on fixed savings.

The CBK’s Credit Officer Survey done in December last year and published Thursday last week, which polled the 39 commercial banks in the country, reveals that liquidity has generally improved for 62 percent of banks, making available to them more cash for their activities.

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Note: The results are not exact but very close to the actual.