Microfinance banks' losses up 561pc on reduced loans uptake

14 microfinance banks recorded a 561 per cent growth in losses - from Sh339 million in 2019 to Sh2.2 billion as of December 2020. [Courtesy]

Kenya’s microfinance banks (MFBs) recorded the worst year in business last year as Covid-19 accelerated the sector’s losses, worsened by competition from Savings and Credit Cooperative Societies (Saccos) and digital lenders.