Wouldn't things like the Kenya Forex chaos over the last 3 years affect this analysis? What about the significantly more competitive pool of savings and financial products in Kenya where banks have significant competition from SACCOs when it comes to lending.
It is hard to believe that lending to government wouldn't have an impact. At the very least the gov't treasuries send some sort of price signal for loans.
I think just looking at interest rates between the Kenya and Uganda might miss a number of other factors that might affect them and the behaviour of the different players. i.e its probably gov't lending and a number of other factors that affect lending rates.
Hey Alex, Love your content!
Wouldn't things like the Kenya Forex chaos over the last 3 years affect this analysis? What about the significantly more competitive pool of savings and financial products in Kenya where banks have significant competition from SACCOs when it comes to lending.
It is hard to believe that lending to government wouldn't have an impact. At the very least the gov't treasuries send some sort of price signal for loans.
I think just looking at interest rates between the Kenya and Uganda might miss a number of other factors that might affect them and the behaviour of the different players. i.e its probably gov't lending and a number of other factors that affect lending rates.