Global ratings agency Moody’s has changed its outlook on the Kenyan banks to negative from stable, citing concerns about high volumes of non-performing loans despite solid profitability and liquidity levels.
The volume of non-performing loans in the local banking sector rose by Ksh133.6 billion ($890.7 million) to Ksh621.3 billion ($4.1 billion) in the 12 months to December 2023, accounting for 14.8 percent of the sector’s loan book (2022: 13.3 percent).
