A CBK report shows annual growth in gross loans by MFBs shrank further by 7.3 per cent in December 2021 from negative growth of 1.2 per cent in December 2020.
Two MFBs recorded profits of Sh17 million each, one reported Sh36 million in profits and one MFB recorded a Sh131 million growth in profit.
Losses for the remaining 10 MFBs ranged from Sh8 million to Sh522 million.
Lending by micro-finance banks (MFBs) has stalled due to competition from robust digital lenders, a new report by the Central Bank of Kenya (CBK) said, pointing to shifts in the low market segment.
A CBK report shows annual growth in gross loans by MFBs shrank further by 7.3 per cent in December 2021 from negative growth of 1.2 per cent in December 2020—indicating low uptake of loans or disbursements.
