Customers at KCB banking Hall in Nairobi. Kenya and Tanzanian banks face risks exposure due to huge investment in Treasury bills and Bonds. FILE PHOTO | NMG
Kenya and Tanzania are among the top 10 countries in Africa whose commercial banks are exposed to sovereign risks due to their heavy investment in Treasury bills and bonds.
A new study of African banks by the global rating agency Moody’s Investors Service shows that such banks which have invested heavily in government securities risk having their creditworthiness affected when the sovereign rating of their governments is reviewed.
