Nipate

Big G is working to bleed the government machinery to the last minute. Have never understood how the gamble of telling residents to eat from govt hotel while spending nothing works. But it does most of the times.   

Being one of the remote places in Mt Kenya, you see Ruto's miscalculations. Despised Tharaka Kindiki gotta work with no traction even in Mbeere.

Banks’ lending slumps, cash piles to record levels in tough economy Commercial banks have raised the cash holdings on their books to record levels amid slow growth in lending to the private sector, in a tough economy where businesses and individuals have struggled to service loans.

Central Bank of Kenya (CBK) data shows that the average liquidity ratio for commercial banks stood at 59.8 percent at the end of August—up from 54.3 percent a year earlier—, the highest recorded and against a regulatory requirement of 20 percent.

The liquidity ratio captures the amount of cash or near cash assets held by banks in comparison to their short term deposits – reflecting how efficiently a bank is deploying customer savings to make profits.The growing cash pile therefore shows that banks have been slow to convert deposits from customers to loans, with the ratio of loans to deposit shrinking to 71 percent compared to averages of over 85 percent in the pre-Covid-19 period.

The slowdown follows cautious lending by banks due to high defaults by businesses and individuals, with the stock of bad loans hitting a record Sh731.8 billion, or 17.6 percent of the total loans issued as at August.

Equity Bank Kenya, which released its third quarter results at the end of last month, had a liquidity ratio of 78.4 percent, with management stating it was seeking to issue more loans.

“It's a flat balance sheet reflecting the environment. We are trying very hard to give loans,” said Equity Group Chief Executive James Mwangi during an investor briefing on October 28.

“We have this Sh1 trillion shillings (in deposits) and if you look at our lending, we are lending only Sh400 billion, so we are left with Sh600 billion. I want to appeal to Kenyans that we understand the environment but there is hope (come borrow),” he added.

Cooperative Bank of Kenya, in its quarter three financials published on Sunday, disclosed a liquidity ratio of 59.3 percent, with a loan book of Sh381.9 billion against a deposit base of Sh511.4 billion.

Banks held Sh5.89 trillion in customer deposits in August while loans issued were Sh4.16 trillion. The industry loan book grew by three percent in the year to August while deposit grew at a faster pace of 4.7 percent leading to higher liquidity levels.

Sick and drunkard Justin Muturi and Broke sick Gachavu will take a massive political hit if they lose after camping in Mbeere preaching tribalism, wantam, and hurling stupid slogans