Top Kenyan banks have yielded to the Covid-19 pandemic with grim prospects of weaker profitability, slowed loan book growth and a surge in the volume of bad loans, signaling reduced dividends for shareholders and reduced corporate tax to the government this year.
According to a special report by rating agency Fitch on eight banks that control 83 percent of the industry's deposits and 76 percent of the total assets, weaker operating conditions have resulted in substantially lower earnings and profitability metrics for the lenders that have also borne the brunt of huge loan restructuring to protect borrowers whose loan repayments have been impacted by the Covid-19 pandemic.
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