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Microbanks sink deeper into the red as income streams dry

The combined loss before taxation the MFBs industry incurred widened 64.99 per cent to Sh622 million in the 12 months to last December. FILE PHOTO | NMG

By  CONSTANT MUNDA

Correspondent

Kenya’s 13 deposit-taking microfinance banks (MFBs) sunk deeper into losses last year as financial income dropped and depositors flocked to larger commercial lenders in anticipation of benefits from the rate cap law.

According to fresh industry statistics from the Central Bank of Kenya (CBK), the losses reflect micro-lenders’ drying income streams and a struggle to secure fresh funds for investments.

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Note: The results are not exact but very close to the actual.

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