Fashion retailer Deacons East Africa has taken a Sh1.3 billion debt at an interest rate of 21 per cent, about one-third higher than ordinary bank debt whose cost is capped at the maximum interest rate of 14 per cent.
The Nairobi Securities Exchange-listed firm has disclosed in its latest annual report that it borrowed Sh1.58 billion at rates ranging between 15 per cent and 21 per cent by issuing debentures to NIC Bank #ticker:NIC and Bank of Africa (BOA).