This archive report was first published on 14 June 2020.
As the COVID-19 pandemic continues to affect businesses and individuals, Kenyan banks have come up with measures to cushion borrowers. According to the National Treasury, banks have restructured loans amounting to Sh360 billion, with personal loans accounting for Sh190 billion.
Among the measures taken by local banks include suspending loan repayments for a fixed period and increasing repayment periods. This is aimed at reducing the burden on borrowers' monthly financial obligations.
On Friday, Absa Bank said it has restructured over 50,000 loan facilities amounting to over Sh54 billion. The bank added that more than 90 per cent of the restructured loans are in the personal and small business segments.
Stanbic Bank Kenya has also restructured loans worth Sh31 billion, providing loan repayment holidays to both individuals and businesses. The bank's head of Personal and Business Banking, Maurice Matumo, said they have restructured loans worth over Sh31 billion.
Leonard Mudachi, Managing Director of Intersrat Ltd, which has received relief, said the loan repayment holiday has enabled the company to stay afloat. 'When the crisis hit, we switched from the profit mode to survival mode. The relief has helped,' he said.
