Kenya’s banks lose investor appeal as interest caps bite
Chase Bank on Mama Ngina Street in Nairobi. Industry players said three banks that had shown interest in injecting money into Chase Bank had developed cold feet. PHOTO | FILE
Chase Bank’s hopes of attracting new capital have been dashed by interest rate caps that were effected two months ago, taking the lustre from Kenya’s banking sector in the eyes of investors.
Industry players said three banks that had shown interest in injecting money into the troubled lender, under a revival plan being overseen by the Kenya Deposit Insurance Corporation, had developed cold feet, citing interest rate caps and the valuation of the bank as the key sticking points.
