Nairobi, March 12 -- Local firms have resorted to borrowing to acquire key business supplies to remain open in a high inflationary environment.

Borrowing for input purchases over the past year has subsequently sustained the demand for credit from the private sector which has remained in double digits despite cost concerns in light of higher interest rates.

According to the Central Bank of Kenya (CBK), working capital needs have fuelled the demand for credit over the past year with most of the loans going to raw material purchases.

"Credit to the private sector remained resilient in the second half of 2023, growing by 13.9 percent in 12 months to December 2023 compared to 12.2 percent in the year to June 2023. This partly reflected cred...