Now Kenya's deposit-taking Saccos start lowering rates
Mwalimu Sacco members queue to access their cash. Kenya Saccos have been advised to assess the impact of the new banking law capping interest rates on their businesses and respond appropriately. PHOTO | FILE
Kenya’s deposit-taking savings and credit co-operative societies (Saccos) have started reviewing interest rates downwards in response to competition from commercial banks following the capping of interest rates last month.
While this is good news for borrowers, it will result in a significant shrinking of margins, with members taking home lower dividends (returns on shares) and rebates (interest on savings).
