Bank loan defaults dip Sh40bn on lower rates

Loan default

The reduction in the stock of non-performing loans was more pronounced among large banks, with KCB Bank Kenya and Equity Bank Kenya on top. 

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The value of loans tapped from Kenyan banks for which borrowers have not serviced for at least three months fell by Sh40.1 billion in the year to June 2026 amid a decline in borrowing rates that have eased pressure on customers.

Central Bank of Kenya (CBK) data shows gross non-performing loans (NPLs) fell to Sh688.2 billion by the end of June from Sh728.5 billion a year earlier even as the banking sector expanded lending.

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Note: The results are not exact but very close to the actual.