The mining and quarrying sector in Kenya has seen a significant increase in loans extended by commercial banks, with a growth of 106.7% to KSh48 billion in the year to July. This surge in credit followed the lifting of a four-year freeze on mining permits, allowing 400 new companies to venture into various activities within the industry. The Kenya Chamber of Mines chairperson, Patrick Kanyoro, attributes the rise in credit demand not only to the confidence boost from the permit freeze lift but also to the growth in construction activities in the country.
The industry, while currently one of the smallest contributors to the GDP, is showing signs of growth and momentum with increased demand for assets like trucks and excavators. The sector generated Ksh26.9 billion in the quarter to June, a 21% growth from the previous quarter. As the sector continues to pick up speed, there is a need for more financial support and investment to further drive its development and contribution to the economy.
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