Kenya's biggest bank shares slump again after rates cap

by Reuters 0

Kenyan bank shares fall after lending rates capped

Shares in KCB Group, operator of Kenya’s biggest bank by assets, fell by 10 percent at the start of trading on Friday as investors reacted to a government move to cap the level of interest that banks can charge borrowers.

Equity Bank, which serves millions of micro-borrowers, fell by a similar margin.

KCB’s shares were trading at 27 shillings ($0.2665) each while shares of Equity traded hands at 29.50 shillings as of 0648 GMT.