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Banks intensify auctions as bad loans hit Sh717bn
The rise in defaults follows five years of falling real wages, as pay hikes lag behind inflation, shrinking purchasing power and forcing Kenyans to cut spending.
A growing number of Kenyans are facing auctions as banks intensify their loan recovery efforts to curb the fast-rising default rate, which hit a record of Sh717.5 billion or 17.4 percent of lenders’ total loan book in the quarter ended March.
According to the Central Bank of Kenya’s Credit Officer Survey, banks largely expect to step up loan recovery actions in eight out of 11 economic sectors in the current quarter ending June, and maintain the same pace in three others.
