The changes were expected to yield higher efficiency for banks who in turn were to charge less for their services while benefiting from increased volumes. Barclays has applied for regulatory approval to join other banks in Kenya, including Standard Chartered, in allowing it to raise the fees charged to clients as of next month, so it can boost its earnings. The move is a major blow to Kenya’s financial sector, which was already reeling from an economic slowdown and political instability. Vimal Parmar of Burbidge Capital said, "they are looking to protect their non-funded (non-interest) income because net interest margins will be squeezed, hence the need to recoup".
Barclays has applied for regulatory approval to join other banks in Kenya, including Standard Chartered, in allowing it to raise the fees charged to clients as of next month, so it can boost its earnings. The move is a major blow to Kenya’s financial sector, which was already reeling from an economic slowdown and political instability. Vimal Parmar of Burbidge Capital said, "they are looking to protect their non-funded (non-interest) income because net interest margins will be squeezed, hence the need to recoup".