“Tourism, restaurant and hotels sector recorded the highest increase in NPLs (Non-Performing Loans) in the fourth quarter of 2016 at 32.2 per cent or Sh1.1 billion. This is mainly attributable to business cash flow challenges due to low business sales/turnovers,” said CBK in its quarterly report. The number of tourist arrivals went up from 1.2 million in 2015 to 1.34 million in 2016, with earnings from the tourism sector improving by 17.8 per cent from Sh84.6 billion in 2015 to Sh99.7 billion last year. The number of visitor arrivals on holiday accounted for 71.9 per cent of all international arrivals followed by business at 13.4 per cent. The slowing down of tourist arrivals at the end of last year may, however, stretch into this year, with political apprehension expected to keep international tourists at bay.

Source: Standard Digital May 01, 2017 13:52 UTC