Banks squeeze depositors in race for bumper profits

Central Bank Governor Dr Kamau Thugge.

Photo credit: File | Nation Media Group

Commercial banks are squeezing depositors in the race to grow profits as they cut interest on savings by larger margins compared to lending rates.

Central Bank of Kenya (CBK) data shows the savings rate — the return paid by banks for demand deposits — fell to 6.86 percent in March this year from 11.48 percent in June 2024, representing a 4.72 percentage drop.

PAYE Tax Calculator

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