Private sector loans collapse to interest-rate cap era lows

The Central Bank of Kenya in Nairobi.

The Central Bank of Kenya in Nairobi. 

Photo credit: File | Nation Media Group

Loans to businesses and households collapsed in August to low levels registered in the interest-rate cap era seven years ago as high interest rates turned away borrowers.

New data by the Central Bank of Kenya (CBK) showed that private sector credit growth dropped to 1.3 percent in August, a level close to the 1.4 percent rate recorded in June 2017 when the country had interest rate caps in place.

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