Soaring Funding Costs Strain Kenyan Banks as Interest Rates Hit 12-Year High

• Kenyan banks face a sharp rise in funding costs, with expenses for some banks tripling compared to interest income growth.
• Central Bank of Kenya’s interest rate hike to 13% and currency volatility significantly impact bank operations.

Nairobi, Kenya – Kenyan banks experienced a substantial increase in the cost of money, with funding costs more than doubling in the first quarter of 2024, outpacing the growth in interest incomes.