Nairobi — Commercial banks have so far restructured loans worth Sh844.4 billion, to cushion borrowers hard hit by the coronavirus pandemic.
The Monetary Policy Committee in a statement on Wednesday revealed that this was the relief the lenders had extended to borrowers by end of June, from Sh679.6billion in May.
Personal and household loans topped the list at Sh240 billion which is an equivalent of 30 percent of all loans in this sector while all loans in this sector while restructured loans to other sectors currently stand at Sh604.4 billion.
According to CBK, the total loan restructures now stand at Sh2.9trillion total banking sector loan book from 23.4 percent in May.
In Mid-March, Central Bank allowed lenders to offer relief to distressed customers after the first COVID-19 case was reported.
This was part of measures adopted by the Government to support Kenyans from a looming economic crisis caused by the outbreak of the disease in the country.
The bank regulator reveals that most of the restructured loans fell in the sectors of trade, real estate, transport communication and manufacturing.
At the same time, CBK maintained its benchmark lending rate at 7.00 percent, citing that the policy measures remain appropriate.
According to CBK, these measures were having the intended effect on the economy.
MPC first lowered the rate to 7 percent in April this year.
At the same time, Private sector credit growth meanwhile grew by 7.6 percent in twelve months to May 2020 compared to 8.1 percent in the 12 months to May, with growth being more profound in the manufacturing, trade, finance and insurance and consumer durables