State faces rates pressure as private sector loans rise

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ICEA Lion Asset Management chief executive officer, Einstein Kihanda, speaking at a past function on January 18, 2022. PHOTO | DIANA NGILA | NMG

Expected growth in private sector lending will put pressure on the government to raise interest rates on Treasury bills and bonds this year amid increasing adoption of risk-based lending by commercial banks.

Analysts at ICEA Lion Asset Management said in their latest quarterly briefing that private sector credit growth is expected to continue its trend towards higher double digits as banks resume lending to the real economy after a slowdown due to the August 2022 General Election.

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