New guidelines to make bank debts more transparent

Central Bank Governor Njuguna Ndung’u says guidelines on reporting bad debts are contained in the prudential guidelines. [PHOTO: JONAH ONYANGO]

NAIROBI, KENYA: Lenders look set to chalk up more bad debts after they picked up last year as higher rates bit and payments were withheld from Government contractors during the Kenya’s political transition.

But the short-term pain may herald long-term gain as another factor has been added to the bad loan mix - stricter enforcement by the Central Bank of Kenya (CBK) of its own prudential rules.