Sharp Daily
No Result
View All Result
Saturday, June 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

Implications of Delayed Salaries on Financial Institutions

Dennis Otsieno by Dennis Otsieno
April 11, 2023
in News
Reading Time: 2 mins read

Financial institutions have raised fears over delayed payment of March salaries by the government. This is because, most of the civil servants will not be able to meet their financial obligations in due time.

Lending institutions will thus be forced to roll over repayments and slap borrowers with higher interest meaning it will be very tough even when they eventually get their pay.

Check-off personal loans to key institutional employees including teachers, security agencies and other State corporations who borrow against the strength of their pay slips and are perceived to be less risky have been popular with banks.

Read: Treasury Given Powers to Privatize Public-Owned Enterprises

RELATEDPOSTS

Real yields vs. nominal yields on Kenya’s government bonds

May 21, 2025

Kenya’s risk-based credit pricing: Five years on

April 24, 2025

Civil servants also have access to personal loans, auto loans, mortgages and other types of financial products. Loan defaults increased for the fifth consecutive month to hit a record Kshs 496.6 billion in January 2023, amid a stressed economy that has made it harder for individuals and businesses to service their loans.

Data from the Central Bank of Kenya (CBK) show that non-performing loans have been on the rise since December last year when they stood at Kshs 487.7 billion.

Read: KRA Set to Miss its Target of Kshs2.1trillion this Financial Year

Banks have been facing ever-rising loan defaults, after the onset of Covid-19 in March 2020, which affected millions of households as their incomes dropped and businesses ground to a halt.

The latest data from CBK shows that 14 percent of all loans were defaulted by end of February, the sharpest 12-month increase over a year. The situation is projected to worsen as the government has confirmed difficulties in payment of civil servants’ salaries.

Email your news TIPS to editor@thesharpdaily.com

Previous Post

John Ngumi Receives Ksh 585 million in Telkom Deal

Next Post

The World Bank to Support Kenya’s Digital Economy

Dennis Otsieno

Dennis Otsieno

Related Posts

News

Private vs Public Pension Funds in Kenya

June 27, 2025
Investments

Investor shift to long term bonds drives oversubscription in CBK’s reopened auction

June 19, 2025
News

The real price of Israel – Iran Conflict for Kenya.

June 19, 2025
Economy

Resilient but strained: Kenyan firms speak out in May 2025 CEO survey.

June 19, 2025
News

Co-op Bank posts KES 6.9 billion profit in Q1’2025

May 16, 2025
Agriculture And Economy
News

Lets get Kenya out of FATF list

May 9, 2025

LATEST STORIES

Private vs Public Pension Funds in Kenya

June 27, 2025

The mechanics of currency manipulation

June 27, 2025

Understanding how to access your pension savings in Kenya.

June 27, 2025

What happened to president Ruto’s economic dream?

June 27, 2025

Opinion: Populism feeds votes, not growth

June 27, 2025

Competitive advantages of small businesses

June 26, 2025

Opinion: Invest in sports for national prosperity

June 26, 2025

Ethiopia’s access to Eritrean ports is a game-changer for trade

June 26, 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