Global ratings agency Moody’s has changed its outlook on the Kenyan banks to negative from stable, citing concerns about high volumes of non-performing loans despite solid profitability and liquidity levels.
The volume of non-performing loans in the local banking sector rose by Sh133.6 billion to Sh621.3 billion in the 12 months to December 2023, accounting for 14.8 percent of the sector’s loan book (2022: 13.3 percent).
