Barclays Bank Kenya Ltd. (BCBL), the country’s second-biggest lender by market value, climbed to a seven-week high on speculation lower lending rates will boost demand for loans.
The stock rose 1.1 percent to 13.65 shillings by the 3 p.m. close in Nairobi, the strongest level since May 18, according to data compiled by Bloomberg.
Barclays will cut its base lending rate by 1.5 percentage points to 21 percent, effective Aug. 1, Chief Executive Officer Adan Mohamed said July 6. The Central Bank of Kenya reduced its benchmark lending rate to 16.5 percent, from a record 18 percent on July 5.
Lower rates will result in increased lending to different sectors of the economy gaining momentum from the next quarter of the calendar year, Kestrel Capital East Africa Ltd. said in an e-mailed note to clients yesterday.
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