Manufacturers have overtaken traders as the biggest defaulters of loans, reflecting the rising operation costs for the sector which has been hit hardest by elevated inflation as well as new and higher taxes.
The sector’s stock of non-performing loans (NPLs) jumped 59.2 percent to Sh133.7 billion in the year to September 2023 from Sh84 billion a year ago, according to data published by the Central Bank of Kenya last week.
