The Central Bank of Kenya. [Photo/businessdaily.co.ke]The latest report by the Central Bank of Kenya (CBK) has shown that heightened political tensions in the third quarter of the year 2017 saw all the major economic sectors reducing demand for loans.
The CBK Third Quarter 2017 Commercial Bank Credit Officer report shows that the major economic sectors: agriculture, tourism, mining, energy, water, financial services, building and construction, transport and communication and household saw reduced demand for credit services for the period under review.
The report says that the decline in the demand for credit services is majorly attributed to increased political risk for the better part of 2017 and reduced demand in real estate is attributed to a challenging business environment.
“The respondents indicated that none of the 11 sectors reported increased demand for credit, 72% of the respondents indicated that demand for credit decreased attributing it to political risk,” The CBK report reads in part as quoted by The Business daily.
“Credit demand in the real estate sector decreased with 42 per cent of the respondents indicating so attributing it to challenging business environment,” the report further reads.
The CBK Third Quarter 2017 Commercial Bank Credit Officer survey polled senior credit officers in all the 39 banks in the country.