This archive report was first published on 13 June 2020.
Published on June 13, 2020, Absa Bank Kenya PLC has taken significant steps to support its customers affected by the COVID-19 pandemic. The bank has restructured over 50,000 loan facilities amounting to more than Sh54 billion.
Absa Bank Kenya Managing Director Jeremy Awori explained that the bank's loan relief programme covers various types of credit, including personal loans, mortgages, asset financing, and business loans. The programme aims to provide relief to customers facing financial difficulties due to the pandemic.
Under the programme, customers can qualify for an initial relief of up to three months, which can be further reviewed on a case-by-case basis. The bank has reported that more than 90 percent of the restructured loans are in the personal and small business segments, with the remainder split between mid-sized companies and large corporates.
According to Awori, the bank recognizes the challenging times faced by its customers, with many businesses scaling down operations or closing down. This has resulted in strained cash flows for some customers, and the bank is working with them to reduce the burden on their monthly financial obligations.
Awori emphasized that the relief will not incur any extra processing fees for the bank's customers. However, during the repayment holiday, interest continues to accrue on the loan, and the customer's loan repayment period is extended to accommodate the relief.
The Central Bank of Kenya had ordered banks to consider measures that would soften pressure on borrowers as they supported the fight against the spreading virus. In late April, the bank regulator revealed that the industry players had restructured loans worth Sh273 billion.
