Kenya’s economy is projected to have grown at 5.9 per cent in 2016, up from 5.6 per cent in 2015, according to a World Bank update. Cytonn Investments manager Maurice Oduor warned that the banking sector layoffs are likely to have ripple effects on other sectors given the interconnectivity of various economic sectors. “For example, the banking sector effect of the Banking Act Amendment will largely affect other sectors in terms of access to credit, which will reflect on the GDP growth,” said Mr Oduor. Deepak Dave of advisory firm Riverside Capital said the full effects of the job cuts will be felt in months to come. Mid-tier lender Family Bank last year began laying off an unknown number of staff as part of efforts to cut costs.

Source: Daily Nation January 24, 2017 08:16 UTC