Loan defaults rose by Sh133.6 billion in the financial year ended December 2023, overtaking levels recorded during the Covid-19 pandemic era and sinking the banking sector into a rare profit drop as economic hardship ravaged households and businesses.
This is a record jump in the value of loan defaults in a single year and erodes the banking sector’s unaudited net profits for the period to Sh172.9 billion from Sh175.5 billion the previous year.
