Kenyan Banks Seen Facing More Bad-Loan Woes Than Nigerian Peers
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Kenyan lenders face more challenges managing bad loans this year than their Nigerian counterparts even as credit losses threaten to increase in both nations, according to Renaissance Capital.
Banks in Kenya are more exposed to small- and medium-sized companies as well as retail businesses, which are more sensitive to economic shocks, said Adesoji Solanke, director for frontier and sub-Saharan Africa banks at Renaissance Capital in London. Nigerian lenders have larger exposure to dollar loans and big firms, with a higher capacity to survive downturns, he said.