Banks’ lending, deposit rates margins decline to 5.3 percent

The Central Bank of Kenya. PHOTO | DENNIS ONSONGO | NMG

The gap between commercial banks’ lending rate and deposit rate narrowed to 5.3 percentage points in January this year on a faster rise in returns paid to savers, narrowing the lenders’ margins.

Data from the Central Bank of Kenya (CBK) reveals that banks on average offered depositors a return of 7.47 percent on their cash as they disbursed credit at an average of 12.77 percent.

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