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Credit crunch hits homes as banks cut lending by Sh112bn
The credit crunch is the product of costly loans that have discouraged borrowers and forced banks to cut lending to risky borrowers on fears of default.
Banks cut Sh122.1 billion worth of loans to households and businesses in the nine months to September, triggering a cash crunch and defaults amid costly credit.
This is the largest drop in decades after new credit grew by Sh340.1 billion in the same period last year on the back of cheaper loans.
