Fitch: Kenyan banks may slow

Fitch Ratings said it said in a special report that despite showing resilience in the wake of challenging operating environment, Kenyan banks' earnings growth may slow as weaker asset quality leads to rising impairment charges.

Although most Kenyan banks continued to record good earnings growth in the first half of 2009, driven by loan growth and increasing fees and commissions, Fitch said it expects impairment charges to rise due to the lag effect of the challenging economic environment on asset quality.

Performance pressures and regional expansion plans means there is currently downward pressure on existing ratings, the agency said.

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