This archive report was first published on 24 August 2020.
As the Covid-19 pandemic continues to affect various sectors, KCB Group has seen a significant surge in loan restructurings, with the lender reworking Sh101 billion in loans between mid-March and June.
According to the bank, mortgages accounted for the highest value of restructured loans, with Sh22.7 billion in applications, representing 22.5 percent of the total restructured loans.
Real estate borrowers have been the most affected, with 640 applications for loan restructuring, totaling Sh115.1 billion in outstanding loan book.
Other sectors that have seen significant restructurings include personal loans, manufacturing, and trade, with 4,002, 364, and 778 applications respectively.
Real estate accounts for 18.1 percent of KCB's Sh642 billion loan book, making it the second highest after personal or household loans, which amount to Sh230.7 billion or 37.7 percent of the loan book.
Building and construction saw Sh12.3 billion or 29 percent of the total Sh42.2 billion restructured, while hotels, restaurants, and tourism businesses restructured Sh15 billion or 55.7 percent of their Sh26.9 billion KCB loans.
The high portion of restructuring in hotel and restaurant businesses came on the back of closure of these businesses as well as suspension of passenger flights into and out of Kenya to control the spread of Covid-19.
