Thursday, July 30, 2020

Central Bank reports increase in Non Performing Loans

    July 30, 2020   No comments

CBK Governor Dr Patrick Njoroge
CBK Governor Dr Patrick Njoroge 

It looks like borrowers are not yet in a position to pay their loans due to the negative economic impact caused by the COVID-19 pandemic.

This is a report of the recently held Monetary Policy Committee (MPC) meeting ,which was presenting the results of the CBK mitigation measures taken last to cushion Kenyans against the pandemic effects.

The ratio of gross non performing loans to gross loans increased from 13.0 percent in May to 13.1 percent in June, reported the Central Bank. 

This simply means most of the borrowers are not paying their loans making the number of non performing loans increase.

To help badly hit borrowers, the Central Bank asked the lenders in March to restructure loans which have so far hit ksh 844.4 billion worth of restructured loans.

The bank regulator also revealed the sectors most hit and can not pay loans as a result of subdued business environment and include the following; personal, trade and manufacturing sectors of the economy. 

During the July 29th Monetary Policy Committee meeting, the Central Bank reported that banks however, remained stable and resilient with strong liquidity and capital adequacy ratios.
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Mwabaya Katana

About Mwabaya Katana

Mwabaya Katana is a Finance Online Researcher and Writer.He is the founder of 'Loans Kenya' Blog.

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