Banks still riding high on interest income despite rate cap

A depositor attempts to get some money from the Fontanela Chase Bank branch's ATM in Mombasa soon after all branches country-wide were re-opened under the receivership of KCB, April 27, 2016. Depositors were only allowed to withdraw a maximum of Sh1 million and below.

More than a year after Parliament imposed a rate cap on banks, Kenyan lenders have not figured out a way of making money other than squeezing every cent from borrowers’ pockets.

According to a sample of the biggest lenders, non-interest income, which is money made from fees, commissions and subsidiaries like securities firms, insurance and forex trading remained flat for the first quarter this year.