Real estate developers most preferred by banks, survey shows
By Jacktone Lawi, May 9, 2022
Overall share of credit advanced to the public enterprises by lenders has increased by 36.4 per cent in the past five years, according to 2022 Economic Survey. Building, construction and real estate top the list of the most preferred sectors by banks to advance credit, accounting for 21.3 per cent of the overall lendings.
Wholesale and retail trade, hotels and accommodation accounted for 21.1 per cent, lending to other businesses came third with 20.4 per cent while manufacturing came fourth among the prioritised lendees.
The survey by Kenya National Bureau of Statistics (KNBS) revealed that activities of financial and insurance were more vibrant in 2021 than in 2020. The report highlighted that the gross value added (GVA), an indicator of the economic activity of the sector expanded by 12.5 per cent in 2021 compared to 5.9 per cent growth in 2020.
“Most monetary and insurance indicators pointed to better performance of the sector in 2021. The financial sub-sector grew by 8.2 per cent compared to 4.4 per cent growth in 2020,” reads the report in part.
In the period under review total domestic credit grew by 15.1 per cent from Sh4,339.1 billion in 2020 to Sh 4,993.7 billion in 2021.
Lending institutions
Governments appetite for local borrowing continued to attract an increase on interests by lending institutions with the national government’ credit growing by 21.5 per cent to Sh1,691.6 billion.