Corporate loan defaults soar as auctions blocked in court duels

Guests during a past Kenya Bankers Association meeting. Corporate clients hold the biggest share of banks’ NPLs. 

Photo credit: File | Nation Media Group

Commercial banks are posting a rise in loan defaults from corporate clients as lengthy court processes slow down the sale of collateral to cut the stock of bad debts.

Top banks, including KCB Group, Equity Group, and NCBA Group, say some cases are taking up to five years to conclude, complicating their push to auction assets to recover their money.

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