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Loans value falls as low credit appetite, rise in defaulters hit Kenya banks

Banks have been accused of rationing credit to businesses in a bid to twist the government’s arm to review the interest caps law. PHOTO | FILE

By  GEORGE KAMAU

The total value of loans given by Kenyan banks shrank last month for the first time in more than decade.

Central Bank Governor Patrick Njoroge said there were more repayments than new borrowings last month. Low credit appetite indicates that businesses are not seeing growth opportunities in the economy, or they are shelving expansion plans due to jitters about the country’s upcoming general election scheduled for August 8.

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