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.