Traders Embrace Supplier Credit Amid Rising Bank Loan Costs

In the face of soaring interest rates, traders are seeking alternative avenues for expansion and restocking, turning increasingly to supplier credit, according to a recent survey. The Africa Trade Barometer report from Stanbic Bank reveals a significant shift in trading practices. In May 2023, approximately six out of ten companies in Kenya were relying on […]

CBK, Investors Standoff Pushes Interest Rates to 16-year High

A standoff between investors and the Kenyan government over interest rates escalated this week after the sale of the October Treasury bond raised less than 20% of the Sh35 billion on offer. Latest data show that the State only raised Sh6.3 billion out of a target of Sh35 billion as investors sought higher returns, suggesting […]

Cash Outside the Baking System Reaches an All-time High of Ksh. 273 billion

Cash circulating outside banks reached a high of Sh. 273.4 billion in July amidst f rushed government spending at the end of the financial year in June, easing the cash flow pain for contractors, suppliers, and their employees.   Statistics from CBK indicate the cash outside banks grew from Sh257.9 billion in June to the […]

Bad Loans in Kenya Set To Rise

Non-performing loans (NPLs) are expected to rise sharply thanks to a tax-induced economic slowdown. Experts say the implementation of new tax measures will most likely depress consumer incomes, triggering discretionary spending while hitting their ability to meet expenses including the servicing of loans. Reduced consumer spending sets up businesses, especially small and medium enterprises, for […]

Saccos Feel Pressure over Sh. 60bn Loan-Deposit Gap

Sacco borrowings are surging at a faster rate compared to deposits, leaving the savings and credit unions facing a negative wealth position and exposed to expensive debt to fund member lending. The difference between the loans and deposits grew by a larger margin to Sh60 billion in 2022. This shows that members sought money from […]

Kenya Shilling Hits 150 against the dollar, Its lowest Since Independence

The Kenyan shilling has lost its value trading against the US dollar by nearly half in under 50 months – making consumers pay dearly for imported goods. A number of commercial banks are already selling US dollars above the Sh150 mark in Nairobi, putting pressure on the Kenyan shilling while setting up consumers for a […]