Nairobi — Credit extended by the monetary banking system to the private sector increased in the first quarter of 2021, with loans to households being the key driver of growth.
This is according to a new report by the Central Bank of Kenya which indicates that lending to the household sector increased by Sh39 billion compared to Sh9.7 billion in the previous quarter partly reflecting focus by banks on secured individual lending as well as on the use of digital platforms.
The Quarterly Economic Review adds that lending to the corporate sector slowed down in the quarter under review partly due to increased repayment of loans.
In terms of economic sectors, the report reveals that all sectors registered positive credit flows reflecting improved demand as economic activities picked up in the first two months of the quarter.
"Notable growth in credit was registered in manufacturing and trade, mainly for working capital requirements," the report reveals.
Other sectors with strong growth were consumer durables, finance and insurance, and building and construction.