The Prevailing Curse of Bad Loans...

Hello there 👋🏿.

It's Brian from The Kenyan Wall Street.

In today's newsletter, bankers are under the Regulator's scrutiny for their slow pace in reducing interest rates. The CBK slashed rates by 75 basis points, but will lenders respond ease the cost of credit?

Here are the business stories we have compiled for you today…

Banking

Bad Loans Haunt Private Sector

Non-performing loans (NPLs) in Kenya have surged to 17.2% as of February 2025—the highest level in two decades! This marks an increase from 16.4% in December 2024, reflecting ongoing repayment pressures across key sectors. The most affected areas include trade, building, and construction—where loan defaults have sharply risen.

Despite recent monetary easing by the CBK, private sector credit remains subdued, compounding the challenge. Commercial Banks are hesitant to loan the private sector as credit risks remain high. Here is what the CBK said in its MPC meeting»»»»»

Today's Poll

Economy  

Shilling Force : Tanzania Grounds Foreign Currency

Kenyan businesses operating in Tanzania now face increased currency risks due to new forex regulations mandating all local transactions be conducted in Tanzanian shillings (TZS).

Enforced from March 28, 2025, the rules ban the use of foreign currencies such as the US dollar or Kenyan shilling for domestic payments. Companies have 12 months to revise active contracts or face legal penalties. Key exceptions include transactions with embassies, international organizations, and duty-free purchases. Kenyan firms are advised to reprice goods, update internal systems, and monitor exchange rates closely. Here is more»»»»»

Trade & Commerce

Eyes on the Contaminated Rice Scandal

The Kenya Bureau of Standards (KEBS) is facing intense scrutiny over an alleged KSh 420 million scandal involving forgery, financial misconduct, and the importation of contaminated rice. A whistleblower letter—reportedly authored by KEBS insiders—alleges widespread malpractice at the agency, even at the detriment of Kenyans’ health.

KEBS Managing Director, Esther Ngari, was summoned to appear before the National Assembly Committee on Trade, Industry, and Cooperatives. Despite initially rescheduling her appearance from March 27 to April 7, she failed to attend. More on this story»»»»»

♦️ Trade Summit In Nairobi

The World Chambers Federation (WCF) Africa Summit 2025 has trained its focus on boosting intra-Africa trade, dismantling non-tariff barriers, accelerating digital transformation and business inclusivity targeting women and MSMEs as it kicks-off a two day summit in Nairobi. Read more about it here »»»»»

Companies

♦️ Building Affordable Homes

KCB Bank and real estate developer Mi Vida Homes have entered a strategic partnership to accelerate the development of affordable homes in Kenya. Through this arrangement, KCB will provide a range of banking solutions, including debt financing to support Mi Vida Homes in the construction of the housing units. More on this deal here »»»»»

♦️ The Electrification Goal

Kenya Power intends to ramp up its rural electrification drive, aiming to connect 150,000 additional customers to the grid under the sixth phase of its Last Mile Connectivity Project (LMCP). The expansion, funded by the African Development Bank (AfDB), will cover 45 counties across Kenya, excluding the capital Nairobi and the coastal city of Mombasa. Read more »»»»»

♦️ Financial Literacy for Women

SBM Bank has launched the Smart Biz lab program in partnership with Tactive Consulting which aims to empower women entrepreneurs to scale their businesses. The program consists of immersive training and coaching sessions which will equip the women entrepreneurs with financial literacy, business acumen and management skills. Here is what the program will do »»»»»

Markets at a Glance…

🔴NASI. -2.59%

🔴NSE10 -3.12%

🔴NSE20 -2.23%

🔴NSE25. -2.81%

Justice

A Temporary Reprieve for Lavington Residents

A 16-storey housing project in Nairobi’s Lavington estate has been temporarily halted for 60 days by the Court of Appeal amid ongoing opposition from residents.

While the court dismissed the residents' bid to stop the development permanently, it granted a conservatory order citing arguable concerns over legal procedure. The Developer Metricon Home insists all approvals are in place, with backing from Nairobi County and NEMA. The pause offers a brief reprieve for locals worried about environmental and procedural issues. Read more here»»»»»

♦️ Compensation 

Zimbabwe has started its white farmer compensation programme, issuing US$308 million in bonds and cash to farmers who lost land in the 2000 reforms. In 2000, the then-President Robert Mugabe led a fast-track land reform campaign that saw nearly 4,000 white commercial farmers removed from their land, which was redistributed to Black Zimbabweans. Read more »»»»»

On your watchlist

Yesterday's Poll Results

Do you support the MPC's decision to slash interest rates by 75 basis points?

🟩🟩🟩🟩🟩🟩 Yes (69%)

🟨🟨🟨⬜️⬜️⬜️ No (31%)