The Kenya Bankers Association has raised concerns over increased non-performing loans in the banking sector. According to a report released by the association, non-performing loans have been ballooning in the recent past up from 5.6% in 2014 to 12% in 2018. Speaking during the launch of the KBA strategic plan for 2019, the Ceo Habil Olaka said the current state of affairs is affecting the sector’s growth. The report further indicates that credit growth has been suppressed over the years majorly due to the introduction of interest rate capping. The banking sector’s deposits grew from 2.5 trillion shillings to 3.4 trillion shillings by May 2019. Assets on the other hand grew to 4.6 trillion shillings from 3.9 trillion shillings.
