This archive report was first published on 6 November 2019.
Shares from Kenya's Cooperative, Equity, and Commercial banks have seen significant gains following the National Assembly's decision to repeal the interest rate cap, according to a report by Renaissance Capital.
Published on November 6, 2019, the report highlights the projected price increases for shares from these banks. Cooperative Bank shares are expected to surge by 36.1%, reaching a target price of Sh21.40 from Sh14.30. Equity Bank shares are projected to rise by 21.4%, reaching Sh58.30 per share from Sh44.20. Kenya Commercial Bank shares have seen a 17.6% increase, with a projected price of Sh56.50 from Sh45.70.
The upsurge in shares comes after the National Assembly faced a quorum hitch to overturn President Uhuru Kenyatta's decision to repeal the interest rate cap. Only 160 MPs out of the required 233 were present, leading to the bill moving forward for signing, most likely this week.
Central Bank of Kenya, World Bank, and International Monetary Fund had opposed the scrapping of the rate cap. However, the National Assembly Finance Committee recommended shielding legacy loans from immediate re-pricing, which was approved by the Speaker, Justin Muturi.
