Interview with CGTN (formerly CCTV): Kenya’s private sector credit growth falls to lowest in a decade
More data is coming in pointing to the damage being done by Kenya’s interest rate caps. Inter-Bank lending has fallen by a third. 6 small banks, accounting for about 7% of sector assets, are struggling with non-performing loan ratios of over 20%, while the sector average was 9.3% by end October. Private sector credit growth has fallen to levels not seen in nearly a decade, at 4.3% in December. Earlier on CGTN’s Ramah Nyang spoke to Anzetse Were, one of the economists who had argued against these rate caps. I asked her if the data available now vindicates her position.