Bank loans for cars, electronics surpass credit for homes, offices
Banking data indicates that consumer durable loans have surpassed real estate financing for the first time. This shift reflects a change in borrowing patterns as banks become more cautious regarding property market risks.
Why it matters
It signals a significant cooling in the real estate sector and a pivot in consumer spending habits toward movable assets.
Bank lending for cars, appliances, electronics, furniture and other consumer durables has overtaken property financing, marking a shift in borrowing patterns as lenders become more cautious on real estate.
Credit for consumer durables has crossed Sh500 billion, latest banking industry data shows, reaching Sh502.2 billion in June 2026, which is Sh44.7 billion or 9.8 percent more than a year earlier.
The stock of bank loans for motor vehicles, household appliances, furniture, electronics and computing equipment, alongside other assets designed to last for several years, was Sh56.3 billion higher than real estate credit.
This was after lending to real estate fell by Sh6.1 billion to Sh445.9 billion during the same period.
Much of the lending under consumer durables is structured through asset-financing arrangements, while unsecured and check-off loans also support purchases of household goods and technology.
Read: Use of cars and household items to secure loans from banks falls 14pc
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