The declining growth in credit to the private sector is likely to hurt the projected six per cent growth in the economy next year, investment firm Cytonn has warned yesterday. The firm joins the National Treasury which has expressed concerns over slower growth next year for the same reasons. "We don't see credit growth affecting growth especially for 2016." The significant decline in private sector credit growth has also been attributed to rising rate of bad loans to businesses and household loans. The investment firm also also raised concerns over the country's public debt which has hit a new record Sh3.566 trillion.

Source: The Star December 05, 2016 23:53 UTC