How increasing interest rates set banks for profit windfall

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The Central Bank of Kenya in Nairobi. FILE PHOTO | NMG

Commercial banks are set to gain from the rising interest rate environment as returns from both government securities and private sector lending continue to increase.

Yields from government securities are, for instance, expected to continue growing from the pass-through of a higher Central Bank Rate, deficit financing by the exchequer and investor expectations on the direction of interest rates.

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