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Kenya’s bank loan conditions among toughest in Africa
A lady counts money at a bank counter. A Sh1 million loan requires a collateral worth at least Sh1.2 million. PHOTO | FILE
Kenya has one of the toughest collateral requirements amongst six countries surveyed by staff of the International Monetary Fund (IMF), painting local banks as significantly risk-averse.
The average collateral accepted by Kenya banks is 20 per cent higher than the value of the loan, meaning to get Sh1 million loan would require the collateral to be worth at least Sh1.2 million (120 per cent).
