Kenyan banks have continued to cut their lending to the private sector amidst the high interest rates that saw defaults on loans reach an 18-year high, reflecting the increased borrowin costs.
Latest data released by the Central Bank of Kenya (CBK) shows that outstanding loans owed to commercial banks dropped by 1.5 percent, or about Sh61 billion, in the two months to June, coming on the back of a series of drops over the last six months that have seen gross loans fall by a cumulative of close to Sh200 billion.
