Commercial banks earned Sh379.6 billion in profit last year
SEE ALSO :Put focus on the youth to ensure peaceThe 2019 Economic Survey released on Thursday points to a stronger performance of the financial and insurance sector in 2018 compared to constrained growth in 2017 following the introduction capping of interest rates in 2016. The growth realised in the period under review was mainly supported by considerable improvements in financial activities in spite of a deceleration in the growth of insurance activities. The sector expanded by 5.6 per cent in 2018 compared to 2.8 per cent in 2017. During the review period, domestic credit rose by 4.6 per cent in 2018 compared to 8.7 per cent in 2017. Growth of credit to the National Government was slower (13.6 per cent) in 2018 compared to 27.5 per cent in 2017. Similarly, credit to the private sector expanded by 1.9 per cent in 2018 compared to 4.1 per cent growth in 2017.
SEE ALSO :Cement exports plummet by 87pcIt also experienced decline earnings from its subsidiaries. According to its report, business at ZepRe suffered forex losses in South Sudan to see net profit decline by 36 per cent, from Sh3.5 billion in 2017 to Sh2.2 billion in the 12 months to December last year. Liberty Kenya Holdings saw after-tax earnings decline nine per cent from Sh674 million in 2017 to Sh608 million last year, blaming the decline on stunted premium growth in Kenya and Tanzania.
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