The lender’s net earnings in the period stood at Sh88.3 million compared to Sh327.4 million in the year before. HF also took a hit from the capping of interest rates, which were absent in the corresponding quarter. This means the lender has limited headroom in accepting more deposits unless it turns its illiquid assets to cash and cash equivalents. HF raised the Sh7 billion in two tranches in 2010 at cheaper rates when markets were more accommodative, with corporates bonds typically oversubscribed. The company raised Sh5.86 billion at an annual fixed interest rate of 8.5 per cent.

Source: Daily Nation May 30, 2017 18:33 UTC