World Bank Reveals Why Kenyan Banks Risk Incurring Losses
The World Bank also commented on Kenya's digital tax administration systems...
✨ Key Highlights
The World Bank has expressed concern over increasing non-performing loans in Kenya's banking sector, which threaten to cause losses for local banks. While the sector is stable, these loans are a major vulnerability, potentially eroding capital buffers.
- Kenya's non-performing loan rate stands at 14.3 percent, ranking third highest in the region after Ghana (22 percent) and the Republic of Congo (15.2 percent).
- The World Bank commended Kenya for successful implementation of digital tax administration systems and efforts to boost digital financial services.
- The Central Bank of Kenya (CBK) has licensed 154 digital lenders to date, with over 700 applications received since 2022.
Continue Reading
Read the complete article from Kenyans
Part of the Day's Coverage
KRA Clarifies Tax on Deposits, World Bank Warns on Bank Loans, and PS Reveals eCitizen Revenue - September 2025
The Kenya Revenue Authority (KRA) has clarified that a recent tribunal ruling does not grant it blanket powers to tax all bank deposits. Instead, the ruling affects only deposits that lack proper documentation, which are deemed taxable income under the Income Tax Act. On a broader economic note, the World Bank expressed concern over increasing non-performing loans in Kenya's banking sector, warning they threaten to cause losses for local banks and erode capital buffers. Meanwhile, Immigration Principal Secretary Belio Kipsang revealed that three technology firms maintaining the eCitizen platform earn over Ksh3 million daily. This disclosure comes amidst criticism over a Ksh50 convenience fee which an audit report deemed unlawfully imposed.
