Last year’s capping of interest rates has shaved Sh26.3 billion off commercial banks’ lending income in the first six months of the year, setting the lenders up for lower profitability this year.
The 38 lenders earned Sh140 billion from interest charged on loans to customers, a 15.8 per cent drop from the Sh166.3 billion they earned in a similar period last year, according to data compiled by the Business Daily.
