Macro Analysis /
Kenya

Sharp rise in loan defaults by Kenyan MSMEs is credit-risk negative for banks

  • 15.5% of the total value of MSME loans was classified as non-performing as of December 2020

  • The deterioration in the MSME loan portfolio mirrors the decline experienced in overall asset quality last year.

  • Kenya's banking sector's NPL ratio worsened from 2019 to 2020 and is expected to increase further in 2021

IHS Markit
4 June 2021
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