Biashara Kenya- Faida za mabenki

waltham · 2014-02-05T00:22:44+00:00

Kenyan banks record 16.8pc growthno comment admin February 4, 2014 By Ruth Mutegi The banking sector continues to show remarkable growth due to diversification of products (FILE) Kenyan banks made 124.5 billion shillings in pre-tax profits for the year ended 31st December 2013, representing a 16.89% growth on the 107.68 billion shillings recorded in the same period in 2012. The Central Bank says this growth was however accompanied by an upsurge in credit risks with non performing loans increasing by 30.91% to 80.59 billion shillings last year. A report by Central Bank indicates that non performing loans increased by 30.91% to 80.59 billion shillings in the year ending 31st December 2013 up from 61.56 billion shillings recorded in the previous year. In 2013, the biggest contributors to the increase in bank non performing loans were the trade, real estate, manufacturing, building and construction, personal, and water sectors. And although most commercial banks expect the levels of nonperforming loans to generally remain unchanged in the first three months of this year, nonperforming loans in personal and household sector are expected to rise due to reduction of customer disposable income as a result of increased expenditure by customers during the December/January festivities. The regulations by the government to ban night travel for public service vehicles is also expected to increase the level of non-performing loans in the transport sector due to reduced disposable income. On the other hand, the Energy and water and communication sectors NPLs are expected to be negatively affected due to the instability in South Sudan where these sectors export directly. The brighter side however is that most banks expect a reduction on the NPLs by next month, as a result of the cost cutting measures being embraced by the government to manage recurrent expenditure, stabilizing of interest rates, and receipt of payments by contractors from the government on government funded projects.

Thread starter waltham
Start date Feb 5, 2014

waltham

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Biashara Kenya- Faida za mabenki

waltham

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