NAIROBI, Feb. 18 -- ONE indicator of an economic downturn is the ability of debtors to repay loans in accordance with the terms of their loan agreements with financial institutions.

Kenyas substantial economic vulnerabilities will be further exposed by the current economic challenges it is encountering, particularly during the period of preparation for the 2027 general elections. In recent years, the Kenyan economy has been prosperous and robust.

In recent years, Kenyas banking sector has experienced elevated levels of Non-Performing Loans (NPLs), which, from an economic perspective, reflect distress in key sectors of the economy.

This is especially evident when focusing on this key economic indicator. An NPL is a loan on which the bor...