This archive report was first published on 19 June 2020.
As the Covid-19 pandemic continues to impact the economy, banks have shown a commitment to helping their clients navigate the challenges.
With the health crisis at the forefront, banks have established strong partnerships with government and non-governmental agencies to control the spread of the pandemic.
Bank staff and customers have been guided by government directives, with all service delivery channels available to customers. Banks have also encouraged the use of mobile and online channels, as well as credit and debit cards.
Notably, banks have remained open in areas under lockdown, providing essential support to households and businesses.
The Central Bank of Kenya and Kenya Bankers Association have played a crucial role in supporting the economy, with banks implementing measures to restructure an estimated Sh560 billion of loans, equivalent to 20% of the banking industry's total loan portfolio.
By providing relief to customers, banks have demonstrated their commitment to responsibility during a crisis. With many households and micro, small, and medium enterprises (MSMEs) vulnerable to the economic impact, banks have taken steps to mitigate the effects.
As a result, the credit market has been supported, with the uptake of private sector credit showing an upward trajectory. Despite the challenges, the rate of growth of credit to the private sector has risen from 7.3% in January 2020 to 9% in April 2020.
— Habib Olaka, CEO, Kenya Bankers Association
