Nairobi, April 29 -- Micro-finance lenders want a longer threshold of three months before disbursed loans can be declared as non-performing, to ease repayment pressure on borrowers and shield the sector from elevated provisioning costs that erode profitability.

The Association of Microfinance Institutions of Kenya (Amfi-K), which comprises 91 entities, says that the current rule requiring loans to be classified as in default after just a month forces them to pile more pressure on borrowers, unlike banks that enjoy a three-month window.

They said in a forum on Wednesday their loan book closed March 2026 at Sh40.46 billion, marking a growth from Sh34.5 billion at the end of December 2025. They believe relaxing the rules for booking defaul...