Farmers replace property developers as biggest loan defaulters in Covid-19 era
Summary
About 23.67 percent of outstanding Sh109 billion loans advanced to the sector were not being serviced as of the end of March compared to 16.03 percent a year earlier, making it the sector with the highest non-performing loans (NPL) ratio.
Agriculture’s NPL ratio marginally zoomed past building and construction (23.52 percent) and trade (19.14 percent) sectors, latest Central Bank of Kenya industry statistics shows.
Analysts attribute the elevated defaults on loan repayments in agriculture to depressed demand from sectors such as hospitality, which was hardest hit by the restrictions and shutdowns imposed to stem the spread of the pandemic.
Defaults on personal loans fall Sh2bn on CRBs return
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Bank profits surge to Sh60b in 4 months on economic rebound
NEWS
Bank profitability increased by more than a third in the first four months of the year, with the lenders raking in Sh59.8 billion.
Data from the Central Bank of Kenya (CBK) shows that by end of April last year, banks made Sh45.3 billion after being hit by the Covid-19 pandemic that had already started devastating the country as airlines, hospitality and export of flowers shut down.
NCBA Group Chief Economist Raphael Agung noted that while the economy might not have fully recovered in the period under review, it is faring much better compared to April last year when the country went into lockdown.
State runs out of space for more domestic loans
NEWS
Treasury only accepted Sh16.6 billion against bids of Sh25.3 billion. [Courtesy]
The government seems to have run out of space to seek additional loans from local investors after it rejected bids running into billions of shillings for its securities.
This has left local investors, particularly commercial banks with the arduous task of finding the safest place to park their cash.
In its auction of the three Treasury Bills, short-term government securities, this week the National Treasury only accepted Sh16.6 billion against bids of Sh25.3 billion.
A week earlier, investors flush with cash responded warmly to the re-opened 20-year Treasury Bond, long-term government securities throwing a strong bid of Sh64.9 billion, a performance rate of 216.4 per cent.
Personal loans defy defaults after Covid pay cut, layoff woes
Summary
Massive layoffs, pay cuts and unpaid leave policies adopted by Kenyan firms at the height of Covid-19 pandemic shocks last year did not trigger spikes in personal loan defaults, latest industry data shows.
Central Bank of Kenya (CBK) data suggests non-performing loans among households accounted for Sh1.9 billion, or 2.83 per cent, of the Sh67 billion loans that were not repaid in nine months through December 2020.
Friday April 16 2021
By CONSTANT MUNDA
Summary
Massive layoffs, pay cuts and unpaid leave policies adopted by Kenyan firms at the height of Covid-19 pandemic shocks last year did not trigger spikes in personal loan defaults, latest industry data shows.
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