This archive report was first published on 26 July 2021.
According to the Central Bank of Kenya's Quarterly Economic Review, credit to the private sector grew in the first quarter of 2021, with a notable increase in lending to households.
The report reveals that loans to households increased by Sh39 billion compared to Sh9.7 billion in the previous quarter, largely due to banks' focus on secured individual lending and the use of digital platforms.
On the other hand, lending to the corporate sector slowed down in the quarter under review, partly due to increased repayment of loans.
Across various economic sectors, all registered positive credit flows, reflecting improved demand as economic activities picked up in the first two months of the quarter.
Manufacturing and trade sectors saw notable growth in credit, mainly for working capital requirements, while other sectors with strong growth included consumer durables, finance and insurance, and building and construction.
