{
  "id": 11656438,
  "title": "Businesses urged to seek help early as loan defaults rise",
  "url": "https://urgent.news/2026/10/03/businesses-urged-to-seek-help-early-as-loan-defaults-rise",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-03T09:48:30.000Z",
  "source": {
    "name": "People Daily Kenya",
    "slug": "people-daily-kenya",
    "url": "https://peopledaily.digital/business/businesses-urged-to-seek-help-early-as-loan-defaults-rise"
  },
  "original_language": "en",
  "account": "Businesses grappling with loan repayments are being advised to approach lenders early rather than waiting until they default, as various factors can contribute to repayment difficulties. During NCBA's 20-year asset financing business milestone on October 2, 2026, NCBA Group Director Lennox Mugambi urged businesses to discuss their challenges with lenders. Mugambi highlighted economic shocks, regulatory changes, and businesses venturing into new sectors as potential contributors to repayment issues, noting that some businesses face financial strain even when the broader economy is thriving.\n\nMugambi explained that NCBA has expanded its financing services to cover equipment for farmers, small and medium-sized enterprises, and contractors. He emphasized that businesses encountering difficulties should consult their lenders early to explore available options. For businesses whose assets, such as vehicles or trucks, remain viable, lenders can assist in redeploying the assets to other sectors. In cases where assets cannot be easily transferred, they might be sold to help address outstanding loans.\n\nKisumu County Executive Committee Member for Infrastructure, Transport, Energy, and Public Works Jerome Ochieng also addressed the issue of access to finance and the operating environment. Ochieng stressed that governments must create a conducive environment for businesses to grow, citing infrastructure, licensing, and operating costs as crucial elements. He highlighted that access to financing is vital for businesses with promising ideas but lacking resources to implement them.\n\nOchieng pointed out that road infrastructure plays a significant role in economic activity, as improved connectivity can attract businesses to previously underserved areas. He emphasized that financing is essential for development projects like road construction. Kisumu's strategic location as a transport and commercial hub has strengthened its role, with increased movement of people creating demand for local transportation services. Ochieng stressed that supporting infrastructure and access to financing would be crucial for growth in transport services.",
  "summary": "Businesses facing difficulties in repaying loans have been urged to engage lenders early rather than wait until they fall into default, amid challenges affecting enterprises across different sectors. Speaking during celebrations marking 20 years of NCBA’s asset financing business on Friday, October 2, 2026, NCBA Group Director for Asset Finance and Business Solutions Lennox Mugambi […]",
  "key_points": [
    "Businesses urged to consult lenders early to discuss repayment challenges",
    "Kisumu County emphasizes infrastructure and financing as growth drivers for transport services"
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}