Nairobi — Commercial banks restructured loans amounting to Sh1.63 trillion by the end of December, a move that was adopted by the lenders to cushion Kenyans from the harsh economic environment occasioned by the coronavirus pandemic, a new data show.
The data by the Central Bank of Kenya reveals that of the loans, personal and household topped the list with Sh333 billion having had their repayment period extended.
For other sectors, a total of Sh1.29 trillion had been restructured mainly to trade at 21.3 percent, manufacturing at 20.4 percent, real estate at 15.4 percent and agriculture at 12.4 percent.
At the same time, the data shows that the banking sector remains stable and resilient, with strong liquidity and capital adequacy ratios.
The ratio of gross non-performing loans (NPLs) to gross loans stood at 14.1 percent in December compared to 13.6 percent in October.
NPL increases were noted in the Transport and Communications, Trade, Real Estate and Agriculture sectors.
"The increases in NPLs were attributable to the subdued business environment, and banks continue to make provisions for the NPLs," reads the MPC statement released on January 27 2021.
The MPC statement also showed that of the Sh35.2 billion that was released by the lowering of the Cash Reserve Ratio in March Sh 32.6 billion has been used to support lending, especially to the tourism, trade and transport and communication, real estate, manufacturing and agriculture sectors.