Microfinance banks cut lending on Covid default fears

NYERI-FAULUA

Faulu Microfinance bank in Nyeri. FILE PHOTO | NMG

Microfinance banks cut lending in the second quarter to June amid fears of default in the wake of coronavirus economic fallout that delivered jobs cuts and closure of businesses.

Central Bank of Kenya (CBK) Financial Stability report showed that the 14 microfinance banks (MFBs) under its watch recorded negative loan growth of 1.5 per cent, without giving the exact value of the disbursed loans.

PAYE Tax Calculator

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