Gross non-performing loans (NPLs) in Kenya’s banking sector fell by 3.3 per cent to Sh674.3 billion in 2025, according to data from the Central Bank of Kenya (CBK).
The decline comes after NPLs rose to Sh697.3 billion in 2024 from Sh651.8 billion in 2023.
The banking sector recorded a steady increase in gross non-performing loans from Sh436.07 billion in 2020 to Sh460.01 billion in 2021 and Sh503.24 billion in 2022.
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The latest decline signals an improvement in loan repayment performance, although the level of bad loans remains high and continues to pose a challenge to the banking sector.
