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Lenders turn to ratings as financials lose shine

Cooperative Bank CEO Gideon Muriuki

Kenyan banks are hoping endorsement by international rating agencies will differentiate them from the negative opinion taken of the country’s banking sector.

Lenders are facing challenges in profitability and growth, with global debt ratings agency Moody’s noting that the seasonal drought has affected agriculture and power generation, elections have delayed investments and lending rate caps have constrained banks’ flexibility to price risks.

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