Bankers see less loan earnings from 2018

Barclays Bank of Kenya MD Jeremy Awori. PHOTO | SALATON NJAU | NMG

Interest income from customer loans is seen reducing from January next year when banks adopt new tougher standards of scrutinising borrowers, officials said.

The implementation of the International Financial Reporting Standard (IFRS) 9 from January 1, 2018 will come with stringent conditions on how banks account for non-performing loans which is expected to trim the size of their of loan books.

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Note: The results are not exact but very close to the actual.