Small banks to feel the biggest pinch as new lending rates 'spoil the party'

Chase Bank customers along Mama Ngina Street, Nairobi read notice after the bank was closed on Thursday 07/04/16. [PHOTO:BONIFACE OKENDO/Standard]

Small banks will have to make the most painful cuts on earnings from interest after the new law spoiled the party for lenders in the country.

Credit Bank, Jamii Bora Bank and Middle East Commercial Bank have emerged as top three casualties under the new interest rate controlled regime given that they will have to cut their rates by the biggest margin to comply.