Bank loan defaults dip Sh40bn on lower rates

The value of loans not serviced by Kenyan borrowers fell by Sh40.1 billion to Sh688.2 billion by June 2026. This decline is attributed to a reduction in interest rates, with the Central Bank Rate dropping from 10.75% to 8.75%. Banks also reported a 16.4% increase in profit before tax, reaching Sh172.4 billion in the first half of 2026.