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We are committed to staying up to date with the legal developments in all the sectors that we work in and our lawyers provide regular insight and commentary on developments across South Africa and Kenya’s legal landscapes.

3 April 2025 Article

Kenya’s rising bad loans: A closer look

The Kenyan banking sector is currently facing a significant challenge due to a sharp increase in non-performing loans (NPLs). In simple terms, a loan becomes non-performing when a borrower fails to make scheduled loan payments, either of principal or interest, for 90 days or more. This trend is worrying because, according to the Central Bank of Kenya (CBK), by December 2024, these bad loans accounted for 16,4% of all loans issued by banks – the highest level recorded in the past decade. The agricultural sector has been hardest hit, with 20% of loans turning bad, followed closely by the real estate sector at 18%.

Banking, Finance & Projects3 min read

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We are committed to staying up to date with the legal developments in all the sectors that we work in and our lawyers provide regular insight and commentary on developments across South Africa and Kenya’s legal landscapes.