The Ministry of Finance has indicated that in October 2024, the value of credit approved marginally increased from Shs1.568Trn in September 2024 to Shs1.589Trn in October 2024, with Government noting that the higher approvals were driven by higher approvals in the Business Services sector as firms secured working capital for the festive season.
The details are contained in the Performance of Economy Monthly report published by the Ministry of Finance, which indicated that the rate of loan approval also significantly improved from 55.2% in September 2024 to 75.4% in October 2024.
The report further indicated that just like in the previous month, Personal Loans and Household loans accounted for the largest share of total credit approved for lending in October 2024, with loans worth Shs445Bn approved, which accounts for 28.0% of the total approved loans.
This was followed by Business Community Social and Other Services where loans worth Shs254Bn, accounting for 16%, while in the Trade sector, loans worth Shs248Bn at 15.6%, while loans to the Building, Construction, and Real estate were to the tune of Shs231Bn accounting for 14.5%, and loans to the Manufacturing sector were to the tune of Shs211Bn, representing a 13.3% share of the total loans approved.
The report also revealed that in October 2024, the stock of outstanding private sector credit increased by 0.3%, from Shs22.209Trn in September 2024 to Shs22.270Trn in October 2024. The Ministry indicated that the growth was driven by a rise in both the Shilling and foreign currency denominated credit.
