Cash-Strapped Kenyans Drive Demand For More Credit

A new report now indicates that the Covid-19 pandemic is continuing to have an impact on the Kenyan credit market, with banks and lending institutions having to adjust their operations to the current economic climate.

While higher prices resulting from inflation drive increased demand for credit, this can also boost the number of less creditworthy borrowers who may eventually default on their payments. As inflation rates rise, so does the base lending rate, which affects consumer ability to pay loans, writes Wanjiku Njugunah for The Exchange.

InFocus

Boda Boda riders turn a roundabout to pick and drop passengers along Kenyatta Avenue in Nairobi.

AllAfrica publishes around 800 reports a day from more than 100 news organizations and over 500 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.

X