Kenya's Bad Loans Problem is the Worst Among East Africa's Banks

Happy Monday, 

This past weekend, negotiations between Iran and the United States in Islamabad failed to yield a binding truce, setting the stage for more conflict and supply chain distractions. The Pope, who is feuding with Washington over the war, is in Africa on a 11 day visit to four countries.

EPRA is set to set new fuel prices for the next month in the middle of accusations of hoarding, high-level fuel procurement allegations, and the uncertainty of more supplies. For this and more, stay updated on The Kenyan Wall Street. 

In today’s issue:

Kenya’s Bad Loans Problem is the Worst in the Region

By Ndegwa Mbuthia

Kenyan banks may have improved their asset quality in FY25, but the sector is still carrying the heaviest bad loan burden in East Africa, according to the FY25 Kenya Banking Sector Report by Wall Street Africa Group. Kenya’s banking sector ended FY25 with an estimated non-performing loan ratio of about 15.5%. That is far above regional peers such as Tanzania at 3.3%, Uganda at 3.7%, and Rwanda at 4.1%. Even after some recovery, Kenya remains more than 11 percentage points worse than the region’s peer markets on bad loans.

The problem is not just cyclical. It is also structural. Read the article here >>>>>

Kenya’s Broadcast Subscriptions Contracted Marginally in 2025

By Fred Obura

Kenya’s broadcasting industry recorded a marginal contraction in the final quarter of 2025, driven by shifting consumer habits and growing competition from internet-based platforms, according to new data from the Communications Authority of Kenya. The figures point to a market undergoing structural change, where traditional broadcast services are increasingly competing with over-the-top (OTT) streaming platforms, which are not fully captured in the regulator’s supply-side data.

Despite the decline in subscriber numbers, Kenya is still expanding its broadcast and communications infrastructure through increased spectrum allocation.

Read the article here »»»»»

Kenya Seeks REIT Reforms to Attract Investor Capital

By Brian Nzomo

During a three-day conference organized by the REITs Association of Kenya (RAK), industry participants noted that temporary exemptions on stamp duty and other transaction taxes had previously led to a modest increase in REIT activity. However, many of these incentives lapsed in 2022, slowing deal flow in the sector.

In Kenya, registered REITs are exempt from corporate income tax on qualifying property income, and transfers of property into REIT structures may qualify for VAT exemptions. Despite these incentives, gaps remain in the tax framework that continue to affect market activity.

Read the article here >>>>>

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