Diamond Trust Bank (DTB) has forecast an increase in lending to individuals and small businesses as Kenya’s economy stabilises and growth picks speed after the difficult times encountered last year. DTB Kenya Chief Executive Officer Murali Natarajan said the banking sector’s credit is also likely to double in the next decade from $32 billion if the current momentum is maintained.
Speaking at the DTB Economic and Sustainability Forum in Nairobi, Mr Natarajan said the immediate impact will be felt by individuals and small businesses. “When I look at the resilience of the economy and the track record of having dealt with so many challenges, that gives me immense confidence going forward,” said Mr Natarajan.
“When I look at the MSME segment, which is partly informal and partly formal, I feel that there is a big opportunity there. Working with our team, with the guidance of the board and the Group CEO, we are pretty confident that focusing on the segments, like agriculture, retail, MSME and making it more small ticket and mass, we should be able to double our balance sheet in about three to four years,” Mr Natarajan added.
He said this would entail more focus on the DTB’s digital offerings, partnerships and increasing the number of branches to reach more customers. Mr Natarajan said his forecast is supported by the stability of the Kenyan economy following interventions to reduce interest rates and the effect of plentiful rains and the reduction of fuel prices. “The macros look stable, interest rates are coming down, and the flow of remittances from Kenyans abroad continue,” said Mr Natarajan.
