Banks Fixed Deposit Rates Rise To 6.6%

Interest rates on fixed deposit accounts rose to an 18-month high of 6.61 percent in February, indicating increased demand by commercial banks for funds to expand their lending activities.

Data from the Central Bank of Kenya (CBK) shows the deposit rate rose from 6.47% in February 2021.

It is the highest since the 6.64% recorded in August 2020.

The rise follows a drop in the growth rate of the deposits in the three months to December compared to the previous quarter, forcing banks to increase rates to attract cash.

“The rise may not be significant at least when you compare with 2020, but it is possibly a case of banks seeking to attract more deposits by offering higher rates,” one banker said.

-Business Daily