2021 seems to be a good year for banks listed on the Nairobi Stock Exchange
After the bad year 2020 marked by the covid-19 pandemic, 2021 seems to bring fresh air to the Nairobi Securities Exchange. Analysts on the Cytonn Investment, a local investment firm, said the banking sector’s performances are expected to improve in the mid and long terms.
The sector’s revenues, which grew by 16.1% in 2020, are expected to grow further this year, driven by the financing needs of the government, whose widening budget deficit limits its ability to access international capital markets. Also, it is estimated that the deployment of the covid-19 vaccination in the world and Kenya will go with the revival of activities, thus limiting the non-repayment of credit.
The other helpful factor to the increase in banking revenues is the diversification of both activity and organic plans. Last year, the sector witnessed several acquisition operations. This helps broaden the banks’ revenue bases. The Covid-19 pandemic has boosted the number of people using mobile banking services; the restoration of fees on the use of this service is an additional element of optimism...
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