Posted 1/29/2024, 3:00:00 AM
Manufacturers Become Kenya's Biggest Loan Defaulters As NPLs Jump 59% to Sh133.7 Billion
- Manufacturers' non-performing loans (NPLs) jumped 59% to Sh133.7 billion, overtaking traders as the biggest loan defaulters
- Manufacturers face rising costs from inflation, taxes, expensive imports and raw materials, high interest rates, and weak consumer demand
- 21.5% of manufacturers' Sh622 billion loan book was in default, higher than other sectors like building and construction
- Overall NPLs across banking industry rose 25.5% to Sh616.9 billion or 15% of total loans
- Kenya aims to grow manufacturing's GDP contribution from 7.8% to 20% by 2030 but growth has been modest so far, below 2-3%