Sh1.5trn bank loans pile pressure on Treasury

The sharp increase in the Treasury’s borrowing from local banks has exposed the economy to shocks in the financial sector, analysts at global ratings agency Moody’s have warned.

Commercial banks have in the past three years amassed Sh1.509 trillion worth of Treasury bills and bonds, equivalent to 54.1 percent of the government’s total domestic debt, which stood at Sh2.789 trillion at the end of last week.