NSE 20 Share Index sinks to five-year low as rate cap bites

Rich Management chief executive Aly-Khan Satchu. PHOTO | SALATON NJAU 

By GEOFFREY IRUNGU, girungu@ke.nationmedia.com

In Summary

• The NSE 20 Share Index sank to 3123.54 points, the lowest since December 20, 2011 when it stood at 3106.72 points.
• The current share price decline is sparked by a return to control of lending rates.

Centum Investments was also affected since it has the absolute majority shareholding at Sidian (formerly, K-Rep) bank, also affected by the new law. Centum has seen its share price lose 11.8 per cent since last Thursday.

Share prices of other banks also continued to fall Monday to the allowed maximum of 10 per cent.

Cumulatively, the top three banks – Equity, KCB and Coop – have each undergone nearly 30 per cent price dip since last Thursday.