Lending boom grinds to a halt

Kenya’s credit boom that saw banks hit the streets to hawk consumer loans is coming to a painful close following the peaking of the number of defaults to a record high and difficulties of mobilising deposits in an economy that is grappling with the challenges of runaway inflation.

Industry insiders say, most banks have changed course from aggressive marketing of loans to chasing defaulters and tightening lending conditions to consumers.

More recently, top bankers have been sounding warning bells over the risk to the financial industry of high level inflation and the accompanying slowdown of the national economy.

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