Commercial Real Estate Top List of Bad Loans – Central Bank of Rwanda

In Rwanda, the Central Bank has released the Monetary Policy and Financial Stability Statement which shows that commercial properties lead the list of sectors with non-performing loans at 19.1%. According to Kasai Ndahiriwe, the Director of the Monetary Policy Department, the highest non-performing loan ratio is a result of the inability of most commercial buildings that could not collect rentals during the COVID19 lockdowns as well as those who lost tenants during and after it.

The non-performing loan ratio increased marginally at the end of 2021 from 4.5% to 4.6% against the 2020 benchmark of 5%, while the outstanding NPLs amount increased 19% from 133 billion Rwandan francs to 158 billion francs. On the other hand, the banking sector saw a 34% increase in provisions for bad debt to 189.5 billion francs in December 2021 from 141.3 billion francs in 2020. The industry’s aggregate net profit however grew by 53.6% to 125 billion francs, with the microfinance sector growing from 5.1 billion francs in 2020 to 8 billion the following year. The insurance sector made a net profit of 63.6 billion francs, an increase from 52.4 billion in the previous year.

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Earlier, the growth forecast projected by economists for Rwanda’s 2022 had declined, owing to inflation and unemployment. It was previously expected that the economy will grow by 7% but will most likely hover around 5%.


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