Number of Kenyans with over KSh 100k in bank accounts drops drastically ▷ Kenya News

- According to the report by CBK, 97% of bank accounts have less than KSh 100,000, indicting less than 1% of saving accounts had more than KSh 1 million

- The data showed Kenya’s wealth remains concentrated in a small segment of the population

- Hundreds of Kenyans have lost jobs in recent months after employers’ closed shop or downsized due to “poor” government policies

The number of Kenyans with more than KSh 100,000 in their bank accounts dropped from 1.583 million in 2017 to 1.45 million in 2018 according to a report set to be released by Central Bank of Kenya (CBK).

The report which comes at a time when hundreds of Kenyans have lost jobs after employers closed shop or downsized their companies due to poor government policies highlights the slump as the biggest drop in 13 years.

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A file photo of the Central Bank of Kenya. Photo: AnswersAfrica.com
Source: UGC

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The report by Business Daily seen by TUKO.co.ke stated that even though the number of bank accounts increased by 13.4% to 53.83 million in 2018, a large number of them have savings less than KSh 100,000.

“If you look at employment index (in the PMI) since the beginning of 2017, it’s been quite neutral, meaning it’s not like there has been improvement in new jobs,” said Jibran Qureishi, the regional economist for East Africa at Stanbic Bank — which tracks company performance monthly through Purchasing Managers’ Index (PMI).

TUKO.co.ke understands the country's economy has shrunk in the recent few years with the corporate sector earning less profit.

The situation has been linked to the government's decision to introduce interest rates caps making banks deny small borrowers loans, terming them risky.

CBK governor Patrick Njoroge and director strategic management department, Rose Detho, admire paintings during the CBK at 50 art completion workshop on Saturday, August 27, 2016. Photo: CBK
Source: Facebook

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The CBK data reveals Kenya’s wealth remains concentrated in a small segment of the population.

“Ninety seven per cent of bank accounts have less than KSh 100,000, indicting less than 1% of saving accounts had more than KSh 1 million,” the report said

The Economic Survey 2019 reports Kenya created 78,400 new formal jobs in 2018 compared to 114,000 in 2017, the lowest since 2012 when 75,000 were churned out.

Earlier TUKO.co.ke reported SportPesa and Betin were the latest companies to lay off staff citing hostile business environment by the government.

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