Kenyan banks' sovereign debt exposure caps profit gains, says Moody's - Africa Business Communities
Kenyan banks' sovereign debt exposure caps profit gains, says Moody's - Africa Business Communities
Source: Africa Business Communities
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DW NOTE
Kenyan banks loaded up on government paper when yields spiked, banking on spread income. Now those holdings cap earnings as sovereign credit risk reprices and capital gets locked in low-returning assets. You can't earn your way out of a balance sheet you already built.