This archive report was first published on 30 June 2020.
Published on June 30, 2020, data from the Central Bank of Kenya (CBK) indicates that commercial banks recorded Sh76.3 billion in profit before tax in the months of January, February, and March this year, down from Sh82.7 billion made over a similar period last year.
CBK Governor Patrick Njoroge warned that close to 75% of Small and Medium Enterprises (SMEs) may fail to reopen their doors due to the disruption to their business models and revenue streams caused by the pandemic.
Despite this, Njoroge noted that the liquidity in the financial sector is more robust compared to a decade ago, following the global financial crisis.
Non-performing loans have increased to 13.1%, mainly in real estate, trade, and manufacturing, but these loans were already on watch before the pandemic.
The amount of customer deposits also went up by Sh80 billion in March this year, representing the biggest rise in deposits since June last year, when the CBK kicked off the demonetisation programme.
