https://www.standardmedi...prefer-brick-and-mortar

About 93 new bank branches were opened last year despite massive layoffs, migration to mobile-based technology and a shift to agency models, a new survey shows. According to the Cytonn Investments 2017 Banking Sector Report, this year alone, National Bank has opened two new branches in Nandi Hills and in Kitale as it targets the expanding agribusiness sector.
NIC Bank, on the other hand, has opened four new branches in Malindi, Watamu, Kilifi and Diani. The report, released yesterday, says following 39 branch closures, more than 1,620 bank employees lost jobs last year in the financial institutions’ effort to contain costs while taking advantage of disruptions by the interest rate cap. “With rising operating expenses in the sector and the expected reduced margins owing to the enactment of the Banking (Amendment) Act, 2015, 11 banks announced plans to downsize. Close to 1,620 bank employees were laid off and 39 branches closed, but the total number of branches in the sector rose to 1,182 in the financial year 2017 from 1,089 in the financial year 2016,” said Cytonn. The investment firm’s numbers were modest as it could not establish how many workers left some of the lenders. Cytonn said, for instance, that the number of struggling Family Bank’s employees who left remains unspecified. The lender let go of 100 staff in December 2016 and a further 150 in December 2017. Banks had 28,009 employees on their books as at August 2016, but the wave of layoffs left 26,076 employees as at June 2017. According to the banking sector lobby - Kenya Bankers Association (KBA) - its members cut 1,933 jobs between August 2016 and the end of June this year due to the reality of the rate cap. According to Cytonn, Equity Bank lost the highest number of staff, 400, followed by Barclays Bank of Kenya at 301 and Standard Chartered at 300.The country’s biggest lender by assets, Kenya Commercial Bank (KCB), laid off 223 employees, while Commercial Bank of Africa closed the most branches at 12. Banks took advantage of the rate cap law to declare a crisis and opted to send workers home to manage costs. The layoffs have, however, come at a cost, including severance packages for early staff retirement. “We expect to see a short-term spike in cost to income ratios as result of managements’ tough decisions on staff rationalisation, branch closures and investments in technology. Going forward, these actions will trim the excess fat, making banks leaner and more efficient to face the future,” said Standard Investment Bank. Most employees have now been replaced by agents and mobile banking channels.

GoK has reverted to reducing the borrowing by slashing the development budget.
Still it will take time for credit pickup to stimulate the economy.

The theory is borrowing costs will go up and 'encourage' GoK to borow less. Banks (the only winners) will be at will to charge Wanjiku even more. One wonders if there's a better solution; where everyone can win a little.

The probability of the executive forcing this through Parliament by September is slim to minimal.

to me this law was the best thing to happen from Kenyan parliament.let the cap remain

that won't sell .they know they won't be re-elected so they can dig a pit the they can't fit in when. they revert to wanjiku in 2023