Among the local banks in South Sudan include KCB Group, Equity Group, Cooperative Bank and CfC Stanbic Bank.
He says this situation will exacerbate the current challenge that banks are facing that include slow down in credit lending and increased provisioning.
“The South Sudan divisions have significant contribution to overall group assets and profitability in these banks and at the moment their valuations are adjusted. We Fund Managers are having a cautious approach during asset allocation on the financial sector and adjusting our portfolios to be overweight the defensive sectors,” Kiprono explained.
The battles in South Sudan are the first between the army and ex-rebels in Juba since rebel leader Riek Machar returned in April to take up the post of Vice President under wartime enemy President Salva Kiir, following a three-year conflict that killed thousands and sparked a humanitarian crisis.
The US State Department said it was ordering all non-essential personnel out of the country, and condemned reports that civilian sites had been attacked in the latest bout of violence.
