Bank loans fall by Sh158bn on high interest rates, defaults

Commercial banks tightened credit standards on the rise of loan defaults to limit their exposure to impairments.

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Loans by commercial banks fell by Sh158.2 billion in the first six months of 2024, underlining the impact of high interest rates on credit demand and loan defaults.

Disclosures by the Central Bank of Kenya (CBK) shows total lending by the industry fell by 3.8 percent even as it attributed part of the drop to changes in the valuation of foreign exchange denominated loans and repayments.

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