Loan default rate in Kenya has increased by 100 per cent from Sh120 billion

[RVtitem]

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Loan default rate in Kenya has increased by 200 per cent from Sh120 billion to Sh240 billion in the last two years, a new report indicates.

According to the Kenya Bankers Association quarter two Economic Bulletin of 2017, the increase is from the first quarter of 2015 to the second quarter of 2017 ending June 30, 2017.

The report attributed the increase in the gross non-performing loans to challenges in the business environment that led to cash flow constraints for borrowers.
https://www.the-star.co.ke/news/2017/09/13/kenyans-hold-sh240bn-of-unserviced-loans_c1634325

[Georgesoros]

RVIten
Stop spreading fake news. Kenyans will outgrow all the debt once the economy picks up. Once Uhuruto get back to power things will fly like an eagle......
On the other hand, the economy may shrink with people loosing jobs left and right. Again my opinionated mind tells me that the govt is too big affecting every sector of Kenyan lives. No money left for investment in infrastructure after paying big fat salaries.

[Omollo]

Running government for Uhuru and Ruto is just SPIN

[hk]

There's no doubt the private sector is suffering.
1. After Dr. Njoroge was appointed Governor of Cbk he enforced strict bank reporting on defaulters. A loan is deemed in default if it's not serviced for 3 months.
2. After 3 months The defaulter is forwarded to credit bureau.
All this are great things so that the zombie companies and individual defaulters can be identified.
Its because of increased and better credit reporting that credit growth started slowing down way before capping of interest rates spread

[RV Pundit]

Exactly. This was a problem that was always there but banks did fuzzy accounting so they didn't have to provisioning (expense) and continue making huge profits - only the likes of stanchart were serious about this.

There's no doubt the private sector is suffering.
1. After Dr. Njoroge was appointed Governor of Cbk he enforced strict bank reporting on defaulters. A loan is deemed in default if it's not serviced for 3 months.
2. After 3 months The defaulter is forwarded to credit bureau.
All this are great things so that the zombie companies and individual defaulters can be identified.
Its because of increased and better credit reporting that credit growth started slowing down way before capping of interest rates spread

[hk]

Looks like CBK is pushing hard to scrap interest rate spread cap.http://www.businessdailyafrica.com/news/CBK-sets-stage-for-repeal-of--rate-caps/539546-4095418-1i0wli/index.html

[RV Pundit]

How will they do that. They have to ammend the law. And Parliament need some convincing.

Looks like CBK is pushing hard to scrap interest rate spread cap.http://www.businessdailyafrica.com/news/CBK-sets-stage-for-repeal-of--rate-caps/539546-4095418-1i0wli/index.html