However, resource mobilization and allocation is not an end in themselves. Economic growth can only be realised if businesses efficiently utilise the resource towards the desired results. The financial sector is therefore in place to encourage a cycle of savings and investment. Credit risks are declining as witnessed by declining non-performing loans in banks. We need to take advantage of this.
Over the last ten years, the trend has drastically changed with a continued drop in the level of non-performing loans from as high as 38 percent of gross advances in 2002 to 7 percent as at March 2010. This is an indication of improved resource management in Kenyan businesses and perhaps the efficiency of screening and monitoring the role the banks have invested in.