Credit to the private sector remains strong

More Kenyans are embracing use of mobile money, according to Central Bank of Kenya. PHOTO | FILE 

Daily News Reporter

CREDIT to the private sector grew at an annual rate of 24.6 per cent in the year that ended October 2015 compared with 22.3 per cent in the previous year with three sectors dominating - agriculture, personal and hotels.

According to the Bank of Tanzania (BoT) monthly economic review, credit growth slowed in other sectors, notably building and construction, trade, and transport and communication.
Meanwhile, net government borrowing from the banking system grew by 4.2 per cent, substantially lower than 60.2 per cent in the year 2014.
According to the BoT review, a large part of the slowdown in net government borrowing was observed in the bank’s holding of government securities.
In terms of shares of outstanding credit to major economic activities, the profile remained almost the same as in October 2014.
Bank loans for trade activities accounted for the largest share of 21.1 percent followed by personal and manufacturing activities at 16.9 per cent and 11.4 percent respectively.
Similarly, the extended broad money supply grew by 16.6 percent in the year ending October 2015, nearly the same rate as in the corresponding period.
The growth of broad money supply was underpinned by net foreign assets of the banking system and credit to private sector. By contrast, net government borrowing from the banking system decreased, according to the central bank’s review.
Net foreign assets of the banking system grew sharply at an annual rate of 35.1 per cent compared to a contraction of 5.4 per cent in the year ending October 2014.