This archive report was first published on 14 June 2020.
As the COVID-19 pandemic continues to affect the economy, commercial banks in Kenya have restructured loans worth over Sh360 billion, with Sh190 billion being personal loans, according to Treasury Cabinet Secretary Ukur Yatani.
Speaking on June 11, 2020, while presenting the country's spending plan for the financial year 2020/2021, Yatani revealed that the restructured loans include Sh190 billion in personal loans.
“Since March 2020, banks have restructured loans in excess of Kenya shillings 360 billion including Kenya shilling Sh190 millions of personal loans,” Yatani said.
The Central Bank allowed lenders to offer relief to distressed customers in mid-March after the first COVID-19 case was reported in the country.
As part of measures adopted by the Government to support Kenyans from a looming economic crisis caused by the outbreak of the disease, the bank regulator revealed in late April that the industry players had restructured loans worth Sh273 billion.
Most of the restructured loans fell in the tourism sector, which has been hard hit by the pandemic after Kenya closed its borders from tourists in a bid to curb the spread of the coronavirus disease.
However, Kenya Bankers Association Chief Executive Officer Habil Olaka warned that the restructuring of loans by Kenya’s banking sector is likely to affect the flow of cash in the industry by an estimated amount of Sh10 billion.
