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Companies

Lenders cast nets beyond interest income

Some of the 300 ambulances that are to be leased by the government for the Kenya Prisons Service. FILE PHOTO | NMG
Some of the 300 ambulances that are to be leased by the government for the Kenya Prisons Service. FILE PHOTO | NMG 

Stung by the interest rate controlling regime that took effect last year, Kenyan financiers are now casting their nets wide to turn the tide on declining earnings.

Banks are now increasingly looking at a piece of the leasing segment currently dominated by foreigners to shore up revenues.

The leasing sector has over the last past six years doubled to about Sh50 billion with a potential of over Sh500 billion, according to recent data from the Leasing Association of Kenya.

Financial institutions affiliated to local leasing companies include NIC Leasing Liability Partnership – owned by NIC Bank Ltd and related subsidiary Mercantile Finance Ltd, Reveries Finance Ltd – owned by Chase Bank Group and Alios Finance Ltd – owned by Alios Finance Group, which provides a wide range of asset finance products just like a commercial bank.

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