Central Bank of Kenya Governor Patrick Njoroge has said the bank is still trying to understand why numbers from the banking sector for July and August showed a decline in private sector lending growth yet key indicators showed the economy was growing at a healthy rate.
Growth fell to eight percent in July and seven percent in August from a Central Bank projection of between 12-15 percent. In December 2015, credit to the sector grew by 18 percent.
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“We are still looking at the puzzle, but as at now, we can’t really tell why the data from the banks showed that private sector credit slowed down beyond our expectations,” said the governor in a press conference on September 21, 2016.
