Bad loans tipped to rise on tax-linked slowdown

Kenya’s diaspora remittances have continued to grow with projections indicating a new record high for 2023. FILE PHOTO | POOL

Non-performing loans (NPLs) are expected to soar on a tax-induced economic slowdown as recent tax measures take a toll.

Analysts say the implementation of new tax measures will likely depress consumer incomes, triggering discretionary spending while hitting their ability to meet expenses including the servicing of loans.

PAYE Tax Calculator

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