Kenyan banks project surge in bad loans on impact of geopolitical tensions

Kenyan banks are concerned about rising loan defaults this year due to surging fuel prices and global supply chain disruptions from the Middle East conflict. The Kenya Bankers Association predicts that the non-performing loans ratio could exceed 16% of gross loans if the situation continues. In response to the price hikes, President William Ruto directed a 50% reduction in value-added tax on fuel for three months.