Banks have raised the average rate for fixed deposits to a three-and-a-half-year high of 7.16 percent, reacting to the hiking of the base lending rate by the Central Bank of Kenya (CBK) and increased appetite by depositors for government securities.
The CBK raised the base lending rate by 1.75 percentage points to 8.75 percent last year in a bid to arrest high inflation, signalling a higher cost of money in the economy for both borrowers and banks.
