The country has one of the most developed banking sectors in Africa but it is also one of the most competitive, with a very developed mobile banking sector as well as traditional, banks with a physical presence.

Diamond Trust chairman Abdul Samji said: “The biggest challenge now is that the banking industry is becoming very competitive, not only in Kenya, but within the East African market. There is a lot of push from various organs of government, for example, the central bank, to reduce our interest rates and as a result our margins are becoming thinner. We are finalising products which target the youth and women and we are sure to get customers from those sectors. This is because 75% of the population is made up of the youth.” 

Such fierce competition helps create better services for customers but has also encouraged Kenyan banks to look beyond their borders for investment opportunities.

While most of the big Kenyan banks have recorded a rise in capital since our 2013 survey, this trend is not replicated across the sector. Indeed, the threshold for entrance into our Eastern Africa regional top 25 has fallen from $66m to $60m over the past year.

 

Source : africanbusinessmagazine.com