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Home, car auctions jump as defaults hit Sh173bn
Lenders largely resort to auctions as a last option after alternative measures such as restructuring of the repayments fail, according to bank managers.
Defaults on loans tapped to buy homes, land and vehicles shot up by nearly a fifth to Sh173.3 billion last year on elevated interest rates, triggering a wave of auctions in a softening economy where business and households grappled with reduced earnings.
Analysis of the latest Central Bank of Kenya (CBK) data shows the stock of gross non-performing loans (NPLs) for the real estate and transportation sectors grew 18.7 percent from Sh146 billion in the prior year.
