Liquidity in Kenyan banks fell below the 50% mark for the first time since the Covid-19 pandemic in the first quarter of 2023, as lending to the private sector surged over the past year.

The lenders’ cash or near cash assets stood at 49.9% in the three months ended March 2023, falling from 50.8% at the end of December, Business Daily newspaper reported, citing Central Bank of Kenya (CBK) data.

The banking sector’s liquidity was last below 50% in December 2019; however, it peaked at 56.8% in June 2021 during the pandemic.

Agriculture, manufacturing, trade, personal and household sectors registered credit growth during the first quarter.

The central bank said that consumers’ confidence in economic resurgence led to improved credit demand.

(Editing by Brinda Darasha; brinda.darasha@lseg.com)