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Browsing: Central Bank of Kenya
Kenya’s economic resurgence in 2024 proving a reality following a notable upturn in recent months, marked by positive indicators across…
In Kenya, the level of bank clients running two bank accounts stood at 53% in 2023 compared to 48.2% in…
Non-performing loans in Kenya surged to a 16-year high of 15 per cent in August 2023. The Kenya Bankers Association…
Rising volatility in Kenya’s Fixed Income Market derives from a combination of global and domestic factors. The yield curve soared…
The loan market in Kenya’s banking sector is going through one of its toughest periods in nearly two decades. With interest rates on the rise and a challenging economic environment, many borrowers—individuals and businesses—are finding it hard to meet their loan obligations.
According to the most recent data from the Central Bank of Kenya (CBK), the proportion of loans that are not being repaid, known as non-performing loans (NPLs), reached 15.0 percent in August 2023, up from 14.2 percent in August 2022. This represents more than $4 billion (Ksh596 billion), the highest it has been in 18 years. The last time Kenya experienced such a high level of loan defaults was back in 2005, when it reached nearly 30 percent.
Kenya’s private sector and households are grappling with costly credit, a government report now indicates, curtailing key investments by firms and individuals despite a stable financial sector. One of the main criticisms of the credit market in Kenya is that the cost of credit and the interest rate spread by the banking sector is high.
On average, the annual interest rate for the Kenyan banking sector is within a range of 12 per cent to 14 per cent for various categories of loans offered, according to the Kenya Economic Report 2023 by the Kenya Institute for Public Policy Research and Analysis (KIPPRA).
Businesses in Kenya are facing the impact of tightened monetary policy that is resulting in high lending rates. The government…
On 15 May, President William Ruto nominated Kamau Thugge as the new governor of the Central Bank of Kenya (CBK). If the Senate and the National Assembly ratify the appointment, Thugge will begin his first term as the CBK governor in mid-June. He will replace the incumbent Patrick Njoroge who assumed office as CBK governor in 2015.
The nomination of Thugge comes at a pivotal time for the Kenyan economy. Kenya’s inflation remains high at almost 8 per cent. The Kenyan shilling has also hit all-time lows against the US dollar. Thus, the monetary policies from the CBK will most likely come in handy in the coming months. But what makes Thugge the perfect fit for the crucial role of Kenya’s top banker?
The Monetary Policy Committee (MPC) on Wednesday noted the sustained inflationary pressures, the elevated global risks and their potential impact…
Olugbenga Agboola, co-founder and CEO of Africa’s largest fintech company, Flutterwae fintech, purchased a Miami beach house valued at $7.1…