Wealthy Kenyans move cash from small banks’ safes
Tuesday December 22 2020
By PATRICK ALUSHULA
Summary
The Central Bank of Kenya (CBK) data shows that small banks controlled 5.84 per cent of accounts with more than Sh100,000, down from 13.26 per cent in 2017 as depositors sought safety in larger institutions.
The 21 small banks classified by CBK as low-tier had 90,572 quality accounts last year compared to 210,047 in 2017. In contrast, the top nine banks added 461, 555 accounts with more than Sh100,000 between January 2016 and December 2019.
Depositors and investors in Kenya were rattled three years ago when the CBK took control of three mid-sized lenders Chase Bank, Imperial Bank and Dubai Bank after the banks ran into financial trouble.
THE STANDARD
HOME & AWAY
The country’s financial regulators led by the Central Bank of Kenya (CBK) have warned on the liquidity risks facing fund managers and pension schemes with an exposure to real estate.
This could lead to such investment managers being unable to pay matured returns or member benefits owing to a property slump in recent years now worsened by the Covid-19 pandemic.
“The pension schemes and fund managers who have invested in buildings and land face liquidity risks, occasioning delays in settling member benefits,” said the Financial Stability Report (FSR) 2020.
Produced annually, the FSR assesses the weakness and strength of Kenya’s financial system and reviews the period from January 2019 to June 2020.