NAIROBI, Kenya, May 22 – Kenyan’s biggest bank by assets Kenya Commercial Bank (KCB) has restructured loans worth over Sh115.1 billion, to beat Equity Bank, which has reviewed Sh92 billion since the coronavirus pandemic swept into the country and destabilized businesses and lives of ordinary Kenyans.
In a statement, the bank says the debt-relief measures, which were proposed by the Kenyatta-led administration to cushion Kenyans against the impact of the pandemic, have seen customers apply for their loans to be restructured, credit lines expanded and loan tenures extended to keep them financially afloat.
Since mid-March, the Bank has approved the restructuring of Sh91.3 billion worth of corporate loans and an additional Sh20.4 billion in loans to mortgage customers. A further Sh3.4 billion for retail customers has also been approved.
KCB Group CEO and MD Joshua Oigara said customers can still seek deferment of loan payments on their personal, business, corporate and housing loans for disruptions caused directly by the COVID-19 pandemic.
“We made a promise after the pandemic that we would walk the difficult journey ahead hand in hand with our customers. We are therefore offering relief to our customers, upon application so that they are able to weather this storm that was unforeseen the world over. We believe this will not only cushion businesses but create a multiplier effect that will ultimately help to save jobs,” said Oigara.
“We know that the pandemic has affected everyone and we are offering extended financial assistance to provide additional relief to our customers to meet their needs and ambitions. We believe this will go a long way in helping them navigate through their most urgent and challenging situations.”
The relief accommodation is being extended to distressed customers upon request and on a case-by-case basis, based on their circumstances arising directly from the pandemic.
For personal check-off loans and scheme loans, upon request by the individual borrower and the employer (corporate) respectively, the customers can enjoy an extended moratorium benefit for a period by 3 months.
Residential and commercial mortgages customers are getting a moratorium on the principal or both principal and interest for 3-6 months with interest being capitalized monthly as it falls due. However, the Bank could still extend the moratorium for a maximum of 12 months, depending on the severity of the COVID-19 effects on the customer’s business.
On the other hand, micro, small and medium-sized enterprises (MSMEs) can opt for repayment moratorium of 3 months; waived […]
