Tuesday, August 31, 2010

Central Bank of Kenya Sees Growth in Private Sector Demand for Credit

DUBAI, UAE, August 30, 2010 /PRNewswire

In its Monthly Economic Review for May, the Central Bank of Kenya (CBK) indicated that credit to the private sector rose to Sh787.9 billion from Sh671.9 billion in a similar period last year. According to the report, trade, private households, and transport were the leading borrowers.

In addition, CBK found that 75 per cent of banks expect credit to the private sector to grow by up to 20 per cent. It indicates that banks and the private sector’s perception of credit has improved considerably, an indication of the firming up of the economic recovery. According to bankers, the ongoing recovery is fuelling demand for credit from individuals and businesses, a trend driven largely by low and stable inflation and declining interest rates.

Stephen Mwaura, Head of National Payments System at CBK, will be discussing the above trends and their implications for the whole of East Africa at IQPC’s Retail Finance East Africa conference, taking place from 26 – 28 October 2010 in Nairobi. He will also be discussing other key developments such as the recently introduced agency banking model guidelines and the establishment of a credit reference bureau.

Other speakers agree that the latest developments open up opportunities for the East African retail finance industry. Suprio Sengupta, General Manager, Marketing and Product Development at I&M Bank, says that the credit reference bureau is “an exciting development for us”.

David Ferrand, Director at Financial Sector Deepening Kenya, sees branchless banking as having a significant impact on the market – he says, “the whole way in which East African consumers interact with financial service providers is going through a major shift. The primary access point will be the mobile phone, retail store and Internet… this opens up huge potential for including the currently excluded.”

Senior representatives from leading banks and other financial institutions in Kenya, Rwanda, Uganda, Tanzania and South Africa will be discussing in depth how the latest market developments will shape the future of retail finance in the region at the Retail Finance East Africa summit. Further information may be obtained at http://www.retailfinanceeastafrica.com , or contact IQPC on +971-4-364-2975 for more details.

About IQPC Middle East:
For over thirty years, IQPC has helped the world’s leading corporations solve their business challenges through the sharing of practical industry solutions and global best practice. In the process, the company has built a formidable reputation for quality and value. During this time, the Middle East’s most progressive companies have benefited from IQPC’s unrivalled global reach, which has connected international expertise with regional and local leaders. For more information, visit http://www.iqpc.ae

For more information, please contact
Chichi Osuagwu - Marketing Manager
IQPC Middle East
T: +971-4-364-2975
F: +971-4-363-1938

SOURCE: IQPC Middle East