Local third tier banks expected to see more mergers and acquisitions

Customers at a banking hall in Nairobi. FILE PHOTO | NMG

The banking sector is expected to see mergers and acquisitions (M&A) of third tier lenders in the wake of reduced operational capital following the rate capping law, Genghis Capital researchers have projected.

The rate capping law came into effect in September 2016, limiting interest charges to a maximum of four percentage points above the prevailing Central Bank Rate, currently standing at 10 per cent.

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