Loans extended by commercial banks to companies and individuals working in the mining and quarrying sector more than doubled to KSh48 billion in the year to July, following the lifting of the four-year freeze on mining permits. The lifting of the freeze allowed at least 400 new companies to venture into different activities within the mining industry, including mineral prospecting, mining, and marketing or exporting of minerals and related products. Players in the industry argue that the freeze lift may have increased confidence in the industry, driving up the credit extended to them by commercial banks and other lenders in the country. “The lifting of the new permits injected some confidence in the mining and quarrying subsectors, and that did impact the credit going into the sector,” said Patrick Kanyoro, the Kenya Chamber of Mines chairperson. In addition to the trickle-down impact of the permit freeze lift, Mr Kanyoro argues that the rise in credit demand and uptake by the sector is also stemming from the growth in construction activities in the country.

Source: Daily Nation October 13, 2024 11:31 UTC