Kenyan Banks Raise Deposit Rates to 26-Year High Amid Rising Government Paper Yields

• Kenyan banks increased interest rates on deposits to 11.48% by June 2024, the highest level since 1998
• Interest expenses on customer deposits surged by 54% as they compete with government securities offering attractive returns

Nairobi, Kenya – Commercial banks in Kenya have raised interest rates on customer deposits to levels not seen since 1998, as they strive to retain deposits in an increasingly competitive environment driven by rising returns on government securities.