The gross non-performing loans (NPLs) increased by 31.6 percent
from Ksh 77.3 billion in June 2013 to Ksh 101.7 billion in
June 2014. Similarly, the ratio of gross NPLs to gross loans increased
from 5.3 percent in June 2013 to 5.7 percent in June
2014.
The spill-over effects of high lending interest rates in 2012 and challenges in the business environment contributed to the increase in NPLs. However, banks continue to deploy enhanced appraisal standards to mitigate credit risk.
During the period under review, 10 out of 11 economic sectorsregistered increase in NPLs
https://www.centralbank....nnualReports/AR2013.pdf
1.3 AUTOMATED TELLER MACHINES (ATMS) AND
PLASTIC CARD USAGE
The number of Automated Teller Machines (ATMs) in the payment card industry increased by 7.3 percent from 2,439 ATMs in June 2013 to 2,618 ATMs in June 2014. This growth may be attributed to commercial banks’ business expansion strategies.
The value of transactions effected through cards in the year to June 2014 increased by 9.58 percent from Ksh 716.44 billionto Ksh 785.09 billion for acquirers while the issuers recorded a marginal decrease of 1.63 percent from Ksh 1365.43 billion to Ksh 1343.17 billion. Correspondingly, the number of transactions decreased by 23.14 percent and 0.79 percent from 291.22 million withdrawals to 223.83 million withdrawals and 311.83 million withdrawals to 309.38 million withdrawals for acquirers and issuers, respectively. The mixed performance can be attributed
to the challenges commercial banks experienced during
the migration to EMV standards in the industry.
1.4 MOBILE PHONE USAGE FOR FUNDS TRANSFERMobile phone money transfer service usage continued to increase among the Kenyan public as indicated by the growth in the number of transactions which increased by 28.19 percent from 643.01 million transactions in the year to June 30, 2013 to 824.26 million transactions in the year to June 30, 2014.
The Central Bank of Kenya continues to monitor the developments in this sector in line with the Government’s policy of enhancing financial inclusion and deepening especially for rural/urban poor and the un-banked. The customer base for Mobile phone money transfer service increased by 9.17 percent from 23.75 million customers to 25.93 million customers, while the number of agents increased by 17.08 percent from
103,165 to 120,781 in the same period with M-Pesa accounting for 66.43 percent, Airtel 9.09 percent and Yu 7.21 percent. The value transferred through mobile money transfer services increased by 27.18 percent from Ksh 1,689.04 billion year to June 30, 2013 to Ksh 2,148.13 billion for the year to June 30, 2014
"There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
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