Deposit rate hits 25-year high as banks woo savers

CBK data shows non-fixed deposit savers however saw their return rise to a five-year high of 4.45 percent in May.

Photo credit: File | Nation Media Group

Commercial banks have raised interest on deposits for the ninth straight month to an average rate last seen 25 years ago in bid to entice savers in the wake of attractive returns from other asset classes including government paper.

Central Bank of Kenya (CBK) data shows banks closed May with an average deposit rate of 11.13 percent from the previous month’s 10.77 percent, increasing returns on deposits for savers.

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