A summary of the ratings by Renaissance Capital. [Photo Courtesy]
As the bill to scrap off rate caps awaits the president’s signature into law, shares from Cooperative, Equity and Commercial banks have surged, according to Renaissance Capital.
According to the report, shares from Cooperative Bank have surged the most with 36.1% projected to achieve a Target Price of Sh21.40 from Sh14.30 followed by Equity Bank which is expected to hit Sh58.30 per share from Sh44.20 after rising by 21.4%.
Shares from the Kenya Commercial Bank have risen by 17.6% with a share expected to stand at Sh56.50 from Sh45.70.
The upsurge comes barely a day after the National Assembly faced a quorum hitch to overturn President Uhuru Kenyatta’s decision to repeal the cap on interest rates.
Only 160 MPs out of the required 233 were present.
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As a consequence, Parliament Speaker Justin Muturi accented President Uhuru’s reservations on the Finance Bill, 2019 which will now move forward for signing, most likely this week.
Central Bank of Kenya, World Bank and International Monetary Fund were against scrapping off the rate cap.
Kenyans with existing loans, however, are likely to make their payments at the previous interest rates after a recommendation from the National Assembly Finance Committee.
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The house committee also recommended shielding of legacy loans from immediate re-pricing which was okayed by the Speaker, saying that it fully accommodated the president’s desires.
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Related Topics
Cooperative BankEquity BankKenya Commercial BankInterest rates capFinancial billPresident Uhuru
