Banks cut deposit rates to eight-year low

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Business Daily | by Timothy Odinga


Interest on fixed deposits dropped to an eight-year low on bankers’ reduced appetite for savings following a slowdown in demand for loans.

The Central Bank of Kenya (CBK) data shows that the deposit rate dropped to 6.3 per cent last December from 7.1 per cent in December 2019.

This is the lowest level since February 2013. The fall is linked to a rise in fixed deposits from wealthy investors and firms in a year when restrictions imposed to curb the spread of Covid-19 reduced investments opportunities that also cut demand for loans.

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