Sharp Daily
No Result
View All Result
Tuesday, October 28, 2025
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team
Sharp Daily
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team
No Result
View All Result
Sharp Daily
No Result
View All Result
Home News

Economic downturn drives Kenyan firms to debt financing

Austin Wekesa by Austin Wekesa
March 12, 2024
in News
Reading Time: 1 min read

Local firms have increasingly turned to debt financing to support their operations, particularly due to high inflation rates affecting crucial supplies.

Despite concerns about the costs associated with higher interest rates, borrowing for purchasing inputs has remained robust in the private sector over the past year.

According to the Central Bank of Kenya (CBK), the demand for credit has been driven significantly by the need for working capital, particularly for acquiring raw materials.

The CBK’s analysis indicates a sustained strength in credit to the private sector during the latter half of 2023, with a growth rate of 13.9% from December 2022 to December 2023, compared to 12.2% from June 2022 to June 2023. This growth is partly attributed to the necessity for short-term working capital, fueled by escalating input costs.

RELATEDPOSTS

Capital Markets Private Offers

Debt Financing Through the Kenyan Capital Markets

July 20, 2023

Businesses have grappled with mounting input expenses surpassing available cash flows over the past year, attributed to various factors including the depreciation of the shilling, increased fuel prices, and the introduction of new taxes such as the 17.5% levy on clinker imports for export and investment promotion.

The Kenya Association of Manufacturers (KAM) underscores the vital role of borrowing for input purchases in sustaining businesses amidst challenges such as weakened consumer purchasing power and declining productivity.

Anthony Mwangi, CEO of KAM, stresses that borrowing has become indispensable for maintaining operations, as failure to do so could result in the drastic measure of shutting down operations.

Previous Post

Airbnb announces ban on surveillance cameras inside rental properties

Next Post

Shaping Africa’s future: Kigali gears up for 2024 Africa CEO forum

Austin Wekesa

Austin Wekesa

Related Posts

News

Eastern Africa’s unified spectrum strategy to boost broadband

October 27, 2025
News

Start Q4 strong with the Cytonn Money Market Fund

October 9, 2025
News

Kenya Q2’ 2025 GDP growth accelerates to 5.0%

October 3, 2025
News

Argentina’s crisis and Kenya’s lessons on political economy and market confidence

September 25, 2025
News

Kenya’s financial system remains stable but faces rising risks

September 25, 2025
News

Where do Kenyan stock returns come from? A napkin framework

September 19, 2025

LATEST STORIES

How the Cytonn Money Market Fund can help farmers grow their income safely

October 27, 2025

Why the cytonn money market fund remains a reliable choice for low-risk investors

October 27, 2025

Why liquidity and safety define smart investing

October 27, 2025

Eastern Africa’s unified spectrum strategy to boost broadband

October 27, 2025

CBK’s KES 76.5 bn bond buyback eases Kenya’s domestic debt pressures

October 27, 2025

Rironi–Mau summit expressway: Kenya’s game changer for transport and regional growth

October 27, 2025

Kenya tightens crypto regulations after INTERPOL flags terror-financing scheme

October 24, 2025

Sidian Bank reshapes leadership in strategic transition

October 24, 2025
  • About Us
  • Meet The Team
  • Careers
  • Privacy Policy
  • Terms and Conditions
Email us: editor@thesharpdaily.com

Sharp Daily © 2024

No Result
View All Result
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team

Sharp Daily © 2024