Kenyan banks listed on the Nairobi Securities Exchange (NSE) paid depositors Sh117.1 billion in the six months ended June 2024, marking a 54.5 percent rise as interest rate on deposits soared to levels last seen 26 years ago.
The rise in interest expense on deposits from Sh75.8 billion highlights the price banks have had to pay as they compete with the government for depositors in an environment where returns on Treasury bills and Treasury bonds have been rising, hitting as high as 18 percent.
