Nairobi, July 16 -- Deposits held by microfinance banks have edged up for the first time in three years, signalling a tentative recovery for a sector that has been under pressure from tight economic conditions and competition from banks and digital lenders.

Central Bank of Kenya (CBK) data shows deposits rose by 5.3 percent to Sh44.15 billion in the year ended December 2025 from Sh41.92 billion the previous year.

The latest deposits held by the 14 deposit-taking microfinance banks regulated by the CBK mark a reversal of a prolonged decline that saw customer savings fall from Sh48.65 billion in 2021 to Sh44.12 billion the following year, and further to Sh42.62 billion in 2023.

The latest rebound marks a boost for microfinance banks, whi...