STOCKS

KCB, Equity Bank stumble at NSE after CBK penalties

Share
Share

The five banks fined by the Central Bank of Kenya (CBK) due to violations relating to the National Youth Service (NYS) scam posted mixed results at the Nairobi Securities Exchange (NSE) on September 13.

A day after the punitive measures were announced by CBK, bourse trading saw Equity Bank drop 2.29% to end the day’s trading at Ksh42.50 after transacting one million shares valued at Ksh44 million.

KCB Bank on the other hand moved 1.7 million shares valued at Ksh69.6 million. This saw the biggest lender in the country close 1.8% lower to Ksh40.75. KCB had traded at Ksh41.50 on Wednesday and saw Thursday’s trading go as high as Ksh42 and as low as Ksh40.50.

Standard Chartered and Co-operative Bank remained steady at the bourse despite being fined Ksh77.5 million and Ksh20 million respectively by the CBK on Wednesday. Standard Chartered, which had opened as high as Ksh204 share price on Monday, traded at Ksh200 on Thursday, the same price as Wednesday. Co-op Bank also maintained its share price, closing at Ksh16.15 for the second day in a row.

Diamond Trust Bank (DTB) was the only of the five banks to see a share price gain, moving one shilling to settle at Ksh181 on Thursday. The bank which is staring at a Ksh56 million fine from CBK had also announced the appointment of the lender’s chief financial officer Alkarim Jiwa to Executive Finance Director. Earlier in the week, DTB had registered a high of Ksh188.

The five banks had been flagged by CBK on September 12 with the country’s monetary authority saying the second phase of investigations could see other banks punished for illegal transactions related to the NYS scam. Potential prosecutions of bank officials and individuals could also accompany the next phase of CBK’s actions.

RELATED : BIG BANK, BIG TROUBLE AS HIGH FINES DOG NYS SCANDAL TRANSACTIONS

Written by
Mike Njoroge

Mike Njoroge is the founder of Daystar Oracle and FootballTriangle. He is passionate about news, religion and sports. He can be reached at: [email protected]

1 Comment

Leave a Reply

Your email address will not be published. Required fields are marked *

PAST ARTICLES AND INSIGHTS

Related Articles
Shehryar Ali, senior vice president and country manager for East Africa and Indian Ocean Islands at Mastercard (left), and Saad Latif, Director of Commercial Operations at Flowcart, sign a strategic collaboration agreement to enable secure, seamless card payments within social and conversational commerce journeys across East Africa.
BUSINESS

Mastercard and Flowcart Partner to Power Secure Card Payments in East Africa

 Mastercard has entered a strategic collaboration with Flowcart to embed secure, seamless...

FirstRand
BUSINESS

FirstRand Seeks to Acquire a Bank in Kenya

FirstRand, a major player in South Africa’s banking business is seeking to...

NSE is in the red
FEATURED ARTICLE

NSE: Navigating the Current Market Cycle

The current correction at the Nairobi Securities Exchange(NSE) is not simply about...

1. Family Group Foundation Chair Dr. Francis Muraya and Kenya Forest Service Chief Conservator of Forests Alex Lemarkoko sign a partnership aimed at advancing Ngong Hills restoration through a one-million tree seedlings nursery project.
BUSINESS

Family Group partners with Kenya Forest Service in Tree Seedlings Nursery Project

The Family Group Foundation has partnered with the Kenya Forest Service (KFS)...