Kenya’s Biggest Bank Chases Down Defaulters to Stem Loan Losses

KCB Group Plc is pursuing defaulters as Kenya’s biggest lender combines recently purchased National Bank of Kenya Ltd. into its operations, Bloomberg News reported. “You’ll see more actions, more demand letters going after our customers” who aren’t repaying loans, KCB Chief Executive Officer Joshua Oigara said on the sidelines of a conference in Nairobi last week. “Next year is the real recovery period for the loans we have for NBK.” The acquisition of state-owned NBK, which has 49% of its loans classified as non-performing, will almost double KCB’s ratio of bad debts to 12%. Oigara aims to bring the ratio down to 8% a year after the consolidation, which will be completed during the course of 2020. The deal was approved last month by antitrust regulators. Read more