Kenya’s Central Bank is painting a bleak picture of the stability and growth prospects of loss-making microfinance banks (MFBs), casting doubt on the ability of the institutions to play their intermediation role of bringing savers and borrowers together in the economy.
The banking regulator, through its latest Financial Sector Stability Report (September 2023) shows that the 14 microfinance banks operating in the country have remained weak and vulnerable to even the mildest shocks, given their low level of key indicators.
