INTERVIEW: Kenya's interbank lending market still fearful, rigid

338 views · Published 3 February 2017 · 5:09 · Indexed 20 September 2026

Channel: CGTN Africa · 2017 · News & Politics

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Kenya's 2016 rate caps continued to inflict damage on the wider economy. In its latest assessment of the Kenyan economy, the IMF warns that they could cut growth by up to 2 percentage points in 2017 and 2018 too. The rate caps have added to the sense of crisis triggered by last year's liquidation of one bank, and receivership of two others. Inter-Bank lending volumes have fallen by about a third, and  large banks are extremely reluctant to lend to smaller ones. CGTN's Ramah Nyang spoke to Anzetse Were, an economist, to better understand this crisis in the inter-bank market.

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