Kenyan banks held over Ksh696 billion in non-performing loans at the end of 2025, according to the Central Bank of Kenya. This marks a marginal decrease from the Ksh697.3 billion recorded in December 2024. The report highlights a slight improvement in the quality of loan books during the year.
The Central Bank noted that while the total amount of bad loans remained high, the overall performance of the banking sector showed some positive trends. This comes amid ongoing efforts to strengthen financial stability and reduce risks in the banking system.
The data reflects the challenges faced by Kenyan banks in managing loan defaults, particularly in a period of economic uncertainty. Authorities continue to monitor the situation closely to ensure the sector remains resilient.
The report underscores the need for continued vigilance and policy adjustments to address the persistent issue of non-performing loans.
