Trouble At The NSE for Top Banks as Interest Rates Bill Becomes Law

Kenyan top three tier 1 banks shares fell sharply at the Nairobi Securities Exchange today morning, barely a day after the signing of the interest rates capping bill into law by President Uhuru Kenyatta.

At the NSE, banks woke up this morning to reduced participation in share buying with no one willing to buy them. The top three tire 1 banks; Kenya Commercial Bank, Equity Bank and Co-operative Bank of Kenya were down by an average of 9.8 percent on Thursday morning.

“Everybody is selling and nobody is buying here,” said Mr. Alji Amin, a businessman and a stock analyst.

Banks have already started feeling the heat even before the law takes effect, confirming the fears of many economic analysts that negative effects on the Kenyan economy would be felt.

According to Mr. Alji, foreign investors are likely to pull out of the securities market with all indications poiting to the Kenyan shilling being likely to suffer too. Of late, the Kenyan shilling has been holding its ground against the US Dollar but with the signing of the bill, experts can only wait to see how the shilling copes.

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