Fitch Ratings warn on Kenyan banks’ high exposure to bad debt as defaults rise

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People in Equity Bank at Kenyatta Avenue branch in Nairobi, Kenya. PHOTO | NMG

A second global ratings agency has maintained its outlook on Kenya’s banks at ‘B’ with a negative outlook, citing the high volumes of non-performing loans.

A ‘B’ rating is considered highly speculative. This means that although the issuer can meet their financial obligations, they are also vulnerable to adverse economic shocks.