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Micro-lenders sell-off loans to banks as defaults rise
The micro-lenders’ pre-tax loss widened to a record Sh3.5 billion in 2024 from the prior year’s loss of Sh2.4 billion as their revenue shrank and operating costs piled.
Microfinance banks (MFBs) have resorted to selling off part of their loan book to commercial banks as they grapple with mounting defaults, falling deposits, and rising competition.
Latest disclosures by the Central Bank of Kenya (CBK) show that the 14 MFBs under its regulation continue to struggle in the highly competitive financial sector, making it difficult to expand their loan book.
