Kenyan Banks Grapple With High Bad Loans Amid Economic Recovery

4 articles · Updated · Business Insider Africa · Apr 20

Kenyan banks continue to face high levels of bad loans, despite recent interest rate cuts and signs of economic recovery.
Non-performing loans remain elevated at 15.6% as of March 2026, prompting banks to lend more cautiously and limit credit to the private sector.
While profits and dividends surged for major banks in 2025, persistent loan defaults and tight credit could slow broader economic recovery in Kenya.

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