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Bank Deposits Surge By Ksh780 billion To Sh2.8 trillion As Firms Hoard Cash

Central Bank of Kenya (CBK) Governor Patrick Njoroge
Central Bank of Kenya (CBK) Governor Patrick Njoroge. [Photo/Courtesy]

Customer deposits in the eight largest banks rose by more than Ksh780 billion to Ksh2.8 trillion in the last six months to June, sector data has shown.

Kenya Commercial Bank (KCB) and Equity got the lion’s share of the deposits with more than Ksh1 trillion, while Co-op, Stanchart, NCBA, Stanbic, DTB and Absa shared the rest.

In the period of six months, KCB’s deposits grew by 35 per cent to Ksh758.2 billion while Equity Bank is holding Ksh543.

Diamond Trust Bank which is at the bottom of the tier lost nearly Ksh3 billion in deposits.

“The implication of the capital sufficiency with adequate buffers means that the banking industry has remained a key line of defence in the economy when it comes to responding to the current economic slowdown,” KBA Chief Executive Officer Habil Olaka said.

Read: Nigerian Lender Access Bank Used Ksh1.4 Billion To Acquire Transnational Bank

With reduced economic activities in the country, the banks are generating very little from loans and other investments, hence the deposits will generate very little for the customers.

Kenya’s economy grew by 4.6 per cent in the six-month period ended June compared to 5.5 per cent at the same time last year against a World Bank projection of 1 per cent growth.

Despite Kenya’s interest rates dropping exponentially, only Absa, KCB, Stanchart banks recorded a surge in their loan books.

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Written by Francis Muli

Senior reporter at Kahawa Tungu, Muli has a passion for human interest stories. Believes in unearthing societal rots that have been hidden from the public eye.
Follow me on Twitter @FmuliKE. Email francis@kahawatungu.com

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