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Why Kenyans are struggling to repay loans

Report shows that stock of non-performing loans has risen to a 16-year high

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by PURITY WANGUI

News30 November 2023 - 15:30
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In Summary


  • The report showed that lenders may face challenges in recovering money loaned out to Kenyans, which may impact their financial health.
  • “There may be a need to restructure the non-performing loans resulting in an additional burden on borrowers in revised interest rates.”

Kenyan borrowers are struggling to meet their debt obligations, a report of the Parliamentary Budget Office shows.

The Quarterly Economic and Fiscal Update (July-September 2023) Report showed that lenders may face challenges in recovering money loaned out to Kenyans, which may impact their financial health.

“There may be a need to restructure the non-performing loans resulting in an additional burden on borrowers in revised interest rates,” the report said.

The report attributed the woes facing Kenyan borrowers to the high cost of borrowing due to the tightening of the monetary stance and the weak business environment occasioned by the depreciation of the shilling.


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