The stock of loan defaults in the country’s banking sector has eased for the first time in eight months on the back of increased recoveries and repayments, offering a breather to banks and emboldening them to increase lending to households and businesses.
Latest data from the Central Bank of Kenya (CBK) shows that gross non-performing loans (NPLs) —the stock of loans for which no interest or principal has been paid for at least three months— declined to Sh720.4 billion in September 2025, down from Sh731.8 billion in August.
