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The Standard e-Paper
The Standard
The Standard Group Plc is a
multi-media organization with investments in media platforms spanning newspaper
print operations, television, radio broadcasting, digital and online services. The
Standard Group is recognized as a leading multi-media house in Kenya with a key
influence in matters of national and international interest.
The best indicator of an economy that is performing well is low levels of non-performing loans (NPLs). Although in the last one year, the gross loan portfolio grew by 0.6 per cent, NPLs grew by 6.6 per cent, which signals loan repayment challenges by companies and households. NPLs tend to rise during economic downturns and decline during prosperity.
Currently, bad loans stand at Sh717 billion. NPLs have risen from 16.4 per cent in December 2024 to 17.4 per cent in March 2025, the highest level in 20 years. NPLs remain heavily concentrated in the corporate sector. For example, the recently released first quarter financial performance of Equity Bank (Kenya) reveals that NPLs rose from 15 per cent in December 2024 to 19 per cent in March 2025, mainly driven by the corporate sector where NPLs surged from 22.4 per cent in December 2024 to 26.7 per cent in March 2025. This explains the dramatic rise in property auctions in the country.
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