The defaults on real estate investment loans such as mortgages rose by Ksh 5.1 billion to Ksh 57.7 billion by the end of 2020.
Car owners and investors in the transport industry were also affected, with their defaulted loans increasing to Ksh 27 billion.
Central Bank of Kenya Governor Patrick Njoroge during a press conference after the Monetary Policy Committee meeting that reviewed the outcome of its policy decisions and recent economic developments on January 28, 2020.DAILY NATION
Restrictions in movement and social-distancing rules to curb the spread of Covid -19 hit the public transportation hard, cutting earnings for taxi and matatu (commuter public service vehicles) owners and jolting their loan repayment plans.
Landlords and transport investors are headed for tougher times as banks prepare to enforce recovery measures.
“For the quarter ending March 31, 2021, banks expect to intensify their credit recovery efforts in all economic sectors. The intensified recovery efforts are aimed at improving the overall quality of the asset portfolio.
“The main sectors that banks intend to intensify credit recovery efforts in order to enhance reduction of non-performing loans are Trade (89 percent), Personal and Household (87 percent), Real Estate (84 percent), Transport and Communication (84 percent), and Building and Construction (84 percent),” reads the CBK survey.