Banking & Finance
Kenya’s financial sector is well developed although the country is considered overbanked with 40 registered banks. The market is highly concentrated with the 12 listed commercial banks owning 89% of the total assets in 2018. Kenya’s banking sector continues to offer attractive returns for investors especially after the removal of the rate cap, Co-operative Bank’s share maintained its top rating of ‘Buy’ with a projected fair price of Sh17.30 from Sh15.15 and a growth potential of 14.2 per cent.
As part of its Vision 2030 Strategy, the Kenyan Government recognized the need to develop a national benchmark for the financial sector to support the achievement of its wider development goals. The key objective of the MTP for the financial services sector is to mobilize savings to realize a savings to GDP ratio of 25-28 per cent as envisaged in the macroeconomic framework underpinning the Vision 2030. This level of savings will sustain an increase in the ratio of investment to GDP of around 30-32 per cent, with a growing amount of resources channeled to support the agriculture, manufacturing and other key sectors identified under Vision 2030, including lending to micro, small and medium enterprises (MSMEs).