Home Business Personal loans defy defaults after Covid pay cut, layoff woes

Personal loans defy defaults after Covid pay cut, layoff woes

central bank of kenya cbk
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Business Daily | by Constant Munda


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.

Defaults in the loans to homes, which had jumped 19.05 per cent to Sh67.6 billion in March 2020 compared with three months earlier…

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