Kenya banks could be headed for zero growth this year

If the low growth rates in revenue and balance sheet persist and assuming interest rate cap remains, bank earnings are likely to head towards zero growth rate in 2019, finally reflecting the tougher economic and operating environment banking is in with the interest ceiling.

Banks are the principal institutions in driving economic growth. It is difficult to imagine economic success where banking sector outlook is weak and benign. The certain risks that Kenyan banks have to navigate remain relevant in driving Kenyan economic prosperity.