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As defaults rise, lenders pray for strategic investors
From left- Capital Markets Authority Chief Executive Officer Paul Muthaura, Real People board member Nthenya Mule and Nairobi Securities Exchange chief executive officer Geoffrey Odundo during the bell ringing to mark the start of Real People bond trading at the Nairobi bourse on August 19, 2015. FILE PHOTO | NMG
In 2015 when only five people out of every 100 disappeared with your money after loaning them, banks and microfinance institutions could afford to dish out cash knowing that good borrowers would cover the difference.
But now it is a different ball game as loan defaults have almost tripled, where 12 out of every 100 borrowers are likely to vanish.
