Credit data use drops signaling declining loan demand
Central Bank of Kenya banking supervision report shows banking requests to credit reference bureaus (CRBs) declined three percent to 37.52 million last year from 38.66 million in 2021 on the election period.
Loan demand is on a decline indicating sliding further after the Central Bank hiked interest rates 250 basis points over the last one year. In the March monetary policy briefing, CBK Governor Patrick Njoroge noted that while private sector credit growth remained just above double digit growth, demand was waning indicating a slowing down economy.
“The number of loan applications and approvals declined, reflecting reduced demand,” Dr Njoroge said.
CBK data also shows individual requests fell 17 percent to 951,740 from 1.15 million in 2021, marking the first drop in at least eight years. Reduced request by individual borrowers usually those seeking state jobs also shows a dip in employment prospects.