The Kenya Commercial Bank (KCB) and Safaricom Plc. have committed to support customers in financial distress, making available more affordable lending and cutting transaction costs on mobile as part of the measures to assist as the country grapples with the effects of the Coronavirus pandemic.
The announcement—which follows a meeting hosted by President Uhuru Kenyatta in Nairobi on Wednesday, bringing together banking industry players— will see KCB Bank set aside KShs. 30 billion in a stimulus fund for onward lending to KCB M-PESA customers during the next 90 days.
The fund will allow for higher borrowing limits for qualifying customers and extended repayment periods for borrowers with existing facilities.
Other relief measures available to individual customers, and small business owners will include renegotiations of the loan contracts to either allow repayment moratoriums, or extending the repayment periods up to one year. The Bank will foot the legal costs associated with the loan restructuring.
“We stand with Kenyans and all our customers at this time as our country and the world grapples with the pandemic. Our firm priority remains ensuring that our employees, customers, business partners and the entire population remains safe and free from the virus,” said KCB Group CEO and MD Joshua Oigara. Adding; “We have a role to continue supporting the economy and stimulating growth. The best remedy as our economy starts to slow down is to support our customers to get along with their lives, and to protect jobs by providing additional lending. We have been in crises before, but if we pull together, even in this environment, we will get the solutions Kenya needs.”
KCB Group Plc Kencom House P. O. Box 48400 – 00100 Nairobi, Kenya Tel: +254 20 3270000 / 2851000 / 2852000 Mobile: +254 711 012 000 / 734 108 200 SMS: 22522 Email: contactus@kcbgroup.com. KCB Group Plc Directors: A. W. Kairu (Chairman); J. N. Oigara; L. K. Kiambi; C.S. – National Treasury; A. A. Khawaja; T. D. Ipomai; J. O. A Nyerere; Ms. G. M. Malombe; L. M. Njiru; Mrs. A.O. Eriksson
The bank and Safaricom will also open the door to customers who had been blacklisted at the Credit Reference Bureaus (CRBs) but have since cleared their facility.
“We shall open credit limits to those customers who had been listed because of defaulting on small amounts, but who are now repaying their loans. Customers who need relief are advised to get in touch with us to work […]