Search

Kenyan Banks Face Rising Defaults as Credit Demand Weakens

Allen dreyfus Logo
© Allen Dreyfus
  • Kenyan banks raise interest rates to 16.45% despite shrinking private sector credit demand
  • Non-performing loans hit a 16-year high, prompting concerns over profitability and risk management

Kenyan banks have hiked interest rates in the first half of the year to counter shrinking private sector credit demand, but the move has triggered a surge in loan defaults. Despite the Central Bank of Kenya (CBK) holding the benchmark rate at 13% for much of the year—only trimming it to 12.75% recently—lenders have pushed their base lending rates up by 125 basis points to 16.45%, according to the CBK’s most recent report.

This article is free to read.

Sign up for free or sign in to continue
reading. Unlike our competitors, we don't force you to pay
to read the news but we do need your email address to
make your experience better.

Create your free account or sign in


Recent Business

Molten metal pouring from ladle in industrial foundry. Photo by Bence Szemerey @Pexels
Can Kipushi’s zinc boom in Congo redraw Africa’s commodity power balance?
Read More »
Bassirou Diomaye Faye, President of Senegal. Photo @ Office of President, Senegal/Facebook
Is Senegal drifting towards default as political rift deepens?
Read More »
People traveling in a canoe in Ganvie, Benin. Photo @ Unsplash
Can Benin sustain its economic miracle under new finance minister as IMF support ends?
Read More »

Recent Politics

Senegal Finance Minister Cheikh Diba and IMF boss Kristalina Georgiva. Photo Kristalina Georgieva/X
Will Cheikh Diba’s market credibility outlast Sonko’s grip on Senegal?
Read More »
Hands preparing tea on a patterned rug with traditional bread and sugar in Abuja, Nigeria. Photo by Muhammad-Taha Ibrahim @Pexels
Nigeria’s sugar tax exposes Tinubu’s painful reform dilemma
Read More »
A scenic view of wind turbines at sunrise, capturing sustainable energy. Photo by Lorna Pauli @Pexel
Egypt’s green energy sprint masks a deepening gas crisis
Read More »

Latest Posts

Latest news insights