Commercial banks have increased interest on deposits to levels last seen 23 years ago to attract savers who are faced with attractive returns from other asset classes including government paper in the wake of three rises in the benchmark lending rates within a year.
Data from the Central Bank of Kenya (CBK) shows banks closed October with an average deposit rate of 9.11 percent in October from the previous month’s 8.39 percent, marking 12 straight months of increasing returns on deposits for savers.
