Bank shares extend gains on hopes rate cap will be lifted

Kenyan bank shares rose in early trading yesterday, Refinitiv data showed, extending their gains for a second day after news that Parliament had inched closer to lifting a cap on commercial interest rates.

Barclays Kenya jumped seven per cent to trade at Sh12.60 per share, while Equity was up 6.6 per cent at Sh43.15 per share, the data showed. Other banking stocks were also up.

Parliament’s finance committee said in a report on Tuesday that lawmakers should lift the cap, after President Uhuru Kenyatta refused to sign the Government’s budget for this fiscal year until the house removes the cap.