Share prices in KCB Group, Equity and Co-op banks fell sharply on Monday for the third consecutive session as investors continued to exit the counter at the Nairobi Securities Exchange.
The fall which started on Thursday last week, was a reaction to the government’s move to cap interest rates.
On Wednesday, President Uhuru signed the Banking (Amendment) Bill 2015 into law which among other things caps the lending rate at not more than four per cent that of the Central Bank’s CBR.
The current CBR is 10.5 which means banks cannot lend more than 14.5 per cent.
Already, Co-op and KCB have complied with the Act.
According to nation.co.ke, Equity, KCB and Co-op had shed 9.32, 9.26 and 9.26 per cent respectively by 11 am.
On the other hand, I&M and NIC had lost 9.77 and 7.29 per cent respectively, nation.co.ke added.