NAIROBI Bradley Chubb Broncos Jersey , May 2 (Xinhua) -- Commercial banks have raised their stake in Kenya's domestic debt by 4 percent in the last two months as they seek to make up for reduced earnings in a tough lending environment.
The increase from 51 percent at the end of February to 55 percent at the end of April means the banks have lent more money to the government through Treasury bills and bonds, Central Bank of Kenya (CBK) data shows on Tuesday.
Kenya's domestic debt currently stands at 19 billion U.S. dollars up from slightly above 18 billion dollars in February.
This means commercial banks have lent to the government some 10.5 billion dollars with the remainder being shared by parastatals (6 percent), insurance companies (7 percent), pension funds (28 percent) and individual investors.
Kenya introduced changes to commercial banks' lending regime last September, capping interest rates at 4 percent above the CBK rate, which currently stands at 10 percent.
The law pushed down lending rates of some commercial banks by half as the charges before the law ranged at between 18 and 28 percent.
Though introduced in the third quarter of 2016, commercial banks earnings declined last year, with the drop being blamed on the law.
Kenya Commercial Bank (KCB), Barclays Bank, Equity Bank, NIC Bank and Stanbic are among the big banks in the East African nation which recorded decline during the period.
KCB, the country's largest bank by assets, posted a flat net profit of 191 million dollars, NIC Bank recorded a 3.3 percent decline in earnings, Barclays Bank 12.6 percent and Stanbic Bank 9.9 percent.
Kenya Bankers Association chief executive officer Habil Olaka recently said lenders are currently diverting more funds to Treasury bills and bonds and other opportunities in the forex market rather than lending to borrowers
"The government debt borrowed through Treasury bills and bonds is less risky and more profitable in the wake of the rate capping law," he said.
On the other hand, private sector lending growth fell to 4.3 percent in 2016 compared to more than 17 percent a year earlier, according to the Central Bank.
Besides investing in government securities, Kenyan banks have embarked on other measures to protect their profits in the changed environment, which include closure of branches and moving services online and on mobile phones.
At least 10 financial institutions out of the 42 that operate in Kenya have announced job cuts and closure of branches, with close to 2,000 workers being affected and 20 branches closed.
Kenya has further witnessed a number of acquisitions in the sector, especially in the second half of 2016 and early this year, involving mainly smaller banks that have found the going difficult.
The International Monetary Fund (IMF) is among leading institutions that have called on Kenya to do away with the capping of interest rates, noting it is not good for Kenya's economic growth.
Analysts reckon that the full impact of the law will be felt this year, therefore, commercial banks are set to lend more to the government to protect their income as they engage in more cost-cutting measures.
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by Xinhua writers Yan Liang, Zheng Kaijun
SHANGHAI, April 16 (Xinhua) -- One of today's most technically-advanced ships in the world set sail from here on Sunday to retrace the oldest maritime route that linked China with the rest of the world.
Merchant Vessel (M.V.) COSCO Netherlands is leaving Yangshan Deep Water Port at 7 p.m. local time (1100 GMT), in Shanghai, the world's largest cargo port, and will dock in the Port of Ningbo in east China, the Port of Singapore, the Suez Canal, the Pireaus Port in Greece, and ports in Rotterdam of Netherlands, Hamburg of Germany, and Antwerp of Belgium, in its about 40-day journey.
Products with internationally well-known brand, like Hewlett-Packard (HP) computers, Sony LCD monitors, Hisense TV, Haier refrigerators, automobile spare parts and bicycles, assembled or made in China, are on board for export to northwestern European and other countries.
An over 150,000 ton oceangoing container vessel, the giant is 366-meter long, 51.2-meter wide and 67-meter high, and can carry up to 13,386 TEU (20 foot equivalent unit). It was manufactured by China's Nantong COSCO KHI Ship Engineering Co., Ltd. in 2013.
China COSCO Shipping Corporation Limited, owner of M.V. COSCO Netherlands, offers service on more than 100 routes globally, including those from the Far East to northwestern Europe, the Mediterranean, the Middle East and Africa, as well as regional feeders within Europe and Southeast Asia nations. Part of the route that M.V.COSCO Netherlands travels overlaps with the ancient Maritime Silk Road and its history can be traced back to ancient time.
Yao Wei, a 30-year-old engine room engineman from Jiangsu Province, first time on board M.V. COSCO Netherlands, told Xinhua, ""I am very looking forward to this new journey, from history to reality, from China to Europe. It must be very impressive.""
The ancient Maritime Silk Road was a crucial conduit for trade and cultural exchanges between China's southeastern coastal regions and countries in Southeast Asia, Africa and Europe.
It was first formed in the Qin and Han Dynasties (221 B.C.-220 A.D.), developed from the Three Kingdoms Period to Sui Dynasty (220-618 A.D.), flourished in the Tang and Song Dynasties (618-1279 A.D.), and fell into decline in the Ming and Qing Dynasties (1368-1911 A.D.).
Through the sea route, silk, tea and china were exported, while spices and rare treasures like precious stones were brought to China.
During the Yuan Dynasty (1279-1368 A.D.), renowned Italian traveler and explorer Marco Polo headed for China along the Silk Road. After living in China for 17 years, he left from Quanzhou, a coastal city in southeast China's Fujian Provin. Wholesale Jerseys From China Wholesale NCAA Jerseys From China Wholesale NBA Jerseys From China Wholesale Cheap Jerseys Wholesale NBA Jerseys Cheap NCAA Jerseys Wholesale Cheap NBA Jerseys Free Shipping Wholesale Authentic Soccer Jerseys Wholesale NHL Hockey Jerseys Wholesale Football Jerseys China Online