Rising Cost of Funds Pressures Kenyan Banks’ Profit Margins

• Interest expenses outpace income growth, squeezing half-year profits
• Banks look to Central Bank rate cuts for relief amid stiff competition for deposits

Nairobi, Kenya – Kenyan banks are grappling with rising costs of funds, which are outpacing income growth and compressing profits for the first half of the year. With interest expenses climbing rapidly, banks are now pinning their hopes on interest rate cuts to alleviate the pressure.