Kenya's nine largest banks held Sh5.7 trillion in collateral for loans by December, an increase from Sh5.1 trillion in the previous year, highlighting a significant reliance on security for lending. This collateral value, exceeding a quarter of Kenya's GDP, is 1.5 times the Sh3.6 trillion in loans issued by these institutions, which collectively represent 75.5 percent of the banking market share. While providing a safety net for lenders, this practice exposes borrowers to the risk of asset seizure and sale at discounted prices, often impacting property like homes and land, which constitute nearly half of the held collateral. Despite advancements in credit information systems, banks continue to prioritize collateral over risk-based lending, unlike some global markets and digital lenders that increasingly utilize alternative data and algorithms.