Nairobi, July 19 -- Banks resumed bigger credit disbursements to households in the opening months of 2026, after last year's rare retreat from consumer lending, spurred by falling borrowing costs and a renewed appetite to grow their retail loan books.

Data by the Central Bank of Kenya (CBK) shows that outstanding loans to households by commercial banks rose to a record Sh596.6 billion in April from Sh558.3 billion a year earlier.

The Sh38.3 billion increase represents annual growth of 6.86 percent, reversing the 1.6 percent contraction recorded in April 2025-the first decline in household credit in years.

The turnaround comes after a year that banking executives said was marked by caution rather than expansion.

"It [2025] was a defens...