Auction fears as bank borrowers default Sh88b in six months

Banks usually respond to defaults by tightening lending, seizing and auctioning loan securities. [iStockphoto]

Borrowers have hit banks with an additional Sh87.6 billion in loan defaults in the first six months of the year, pointing to a cash crunch that could set up thousands of debtors for property seizures.

The latest data from the Central Bank of Kenya (CBK) shows the stock of credit for which principal or interest has not been paid for at least 90 days rose for the sixth straight month to Sh514.4 billion at the end of June.