Bank shares fall after lending rates capped

Kenyan bank shares fell sharply at the start of trade on Thursday after the country’s president signed a law capping commercial banks’ interest rates.

Shares in KCB Group, which operates Kenya’s biggest bank by assets, fell 9.9 percent to trade at Sh29.50 ($0.2912) per share. Shares in Co-op Bank of Kenya and Equity Bank were down by a similar margin.

Traders said there were millions of shares on offer without matching bids.