Nairobi Securities Exchange. FILE PHOTO | NMG
The wealth of investors owning banking shares increased by Sh21.6 billion after the lenders’ stocks surged on news that President Uhuru Kenyatta has demanded that lawmakers remove the cap on commercial lending rates.
Seven of the 10 banks listed at the Nairobi Securities Exchange (NSE) gained on what stock dealers linked to increased demand for the lenders' shares on the expectation of increased profitability and stock gains.
The rally started on Thursday when news leaked to the market that Mr Kenyatta had sent a memo calling for the repeal of the law that introduced the rate cap in September 2016.
Investors in Equity gained Sh7.3 billion in the two days after the share rose 5.4 percent, KCB rose Sh5.93 billion after the stock increased 4.4 percent while owners of Co-operative Bank saw their wealth rise Sh2.3 billion.
Standard Chartered, I&M Bank and mortgage lender HF shares failed to register price gains, shedding Sh134 million collectively although this had little impact on their market valuation.