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Kenyan bank shares fall after lending rates capped

A stockbroker transacts shares during a trading session at the Nairobi Securities Exchange in Kenya's capital Nairobi January 11, 2012. REUTERS/Thomas Mukoya (Reuters)

NAIROBI (Reuters) - Kenyan bank shares fell sharply at the start of trade on Thursday after the country's president signed a law capping commercial banks' interest rates. Shares in KCB Group, which operates Kenya's biggest bank by assets, fell 9.9 percent to trade at 29.50 shillings ($0.2912) per share. Shares in Co-op Bank of Kenya and Equity Bank were down by a similar margin. Traders said there were millions of shares on offer without matching bids. ($1 = 101.3000 Kenyan shillings) (Reporting by Duncan Miriri and George Obulutsa; editing by Jason Neely)