The Central Bank of Kenya (CBK) has reported a significant rise in loan defaults across Kenya's financial sector, impacting both households and SACCOs. This trend signals increasing financial vulnerability and potential instability.

• 16.6 per cent of borrowers defaulted in 2024, up from 10.7 per cent in 2021, with the Hustler Fund experiencing the highest default rates among loan products.
• Deposit-taking SACCOs saw non-performing loans increase by 19.7 per cent to KSh53.1 billion, threatening their stability.
• Mismanagement in secondary SACCOs, particularly KUSCCO, led to losses of KSh13.8 billion for SACCOs.