Home loans defaults hit record Sh40bn on interest rates rise

KMRC

Since January 2022, the CBK has made seven rate increments, raising the Central Bank Rate (CBR) from seven percent to 13 percent in the period.

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The value of non-performing mortgage loans in Kenya hit an all-time of Sh4o billion in December 2023 on the back of higher interest rates and difficult economic conditions borrowers are facing.

Newly released Central Bank of Kenya (CBK) data shows that there was an eight percent or Sh3 billion increase in the value of bad loans for mortgage lenders last year, which capped a tough two years for the segment.

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