Just how do Kenyan banks make all those billions?

NAIROBI: The World Bank’s 2016 ‘Doing Business Report’ is out. Kenya moved 21 positions to position 108, in part because “the getting-credit indicator improved upwards as a result of the introduction of Credit Reference Bureaus, allowing financial institutions to assess the credit-worthiness of firms and individuals”. Let us allow this to sink in.

 

Arguably, there are three key stakeholders in a well-performing banking sector: the State as a facilitator while ensuring there is a contribution to national development; the banks which aim to make a buck while being responsible players, and the citizens who patronise the banks by depositing and borrowing to enhance their well being. The sector is doing well when all the three stakeholders are happy and prospering.