Government Debt Pays Kenya Banks as Private Sector Debts Bite
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Kenyan lenders boosted investments in government securities and slowed down lending to the private sector, even as returns from domestic debt kept dropping.
Yields on domestic debt retreated in the past six months, with the 91-day Treasury bills reaching a low of 8.79% at the latest auction on March 27 from a high of 15.7% at the end of September. Returns on 364-day debt have dropped to 10.4% from 16.8% last year.