Although Kenya’s banking sector remains generally sound, the extra pressures generated by the pandemic have led to a jump in the non-performing loan (NPL) ratio and require close monitoring.
The country has a total of 43 commercial banks. The sector is moderately concentrated with the eight biggest banks accounting for around 75% of the system’s assets, according to Fitch Ratings. At the end of 2020, the banking system’s balance sheet stood at Ks5.4tn ($50bn), up from Ks5.2tn at the end of 2019 — of which, loans and advances amounted to Ks2.99tn, according to the Central Bank of Kenya (CBK).
