(3 Minutes Read)
According to an analysis of the banks’ financial statements covering 12 months to the end of December last year, interest paid out on customer deposits rose by 48.2 percent from Sh125.7 billion in 2022
Listed Kenyan banks splashed Sh186.3 billion to attract and retain high-value deposits in 2023 as rising interest rates set up fresh competition among lenders for customer funds.
According to an analysis of the banks’ financial statements covering 12 months to the end of December last year, interest paid out on customer deposits rose by 48.2 percent from Sh125.7 billion in 2022.
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The higher returns on deposits are a result of the banks motivating depositors to attract huge amounts of money for onward lending to businesses as well as to the State, coming at a time when the rates for government securities have hit new highs.
