Banks’ lending margin widens as they squeeze depositors

The Central Bank Of Kenya.

Photo credit: File | Nation Media Group

Commercial banks have continued to squeeze their customers for higher margins after cutting their lending rates at a slower pace compared to the returns they offer for deposits.

The industry’s average lending margin —which measures the difference between average loan and deposit rates— currently stands at 7.48 percent, up from 5.74 percent in the second half of 2024 when interest rates were at their peak.

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