Bank owners are headed for a tough new year of flat or lower dividend payouts as the lenders move to comply with the more conservative accounting standards that will see Kenya’s six largest banks take a Sh20 billion hit to meet capital requirements alone.
The coming into force of the International Financial Reporting Standards 9(IFRS9) on January 1, 2018 will require banks to provide for expected loan losses rather than those already incurred, effectively cutting their profitability and eroding their capital base.
