Contractors default on 37pc of loans on cash flow woes

The sector has seen bad loans nearly double in three years, climbing from Sh28.4 billion in 2022 to Sh41.7 billion in the year that followed.

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Contractors in the building and construction sector defaulted on more than a third of loans they took to undertake projects, underlining the impact of stalled government projects on banks. 

Data from the Central Bank of Kenya shows Sh52.1 billion out of a Sh140 billion loan book for the sector was non-performing at the close of 2024.

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