Banks cut loans to State by Sh104bn over low returns

The Central Bank of Kenya building in Nairobi. PHOTO | DENNIS ONSONGO | NMG

Banks more than halved lending to the government last year as they sought higher returns that the Central Bank of Kenya was unwilling to offer, official domestic public debt data show.

The commercial lenders cut fresh investment in largely risk-free government securities to Sh64.87 billion in the year ended December 30 from Sh169.74 billion the year before, signalling a reallocation of cash to businesses and households.

PAYE Tax Calculator

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