As the COVID-19 pandemic took hold in 2020, the Central Bank of Kenya (CBK) introduced emergency measures to support borrowers and the banking sector. By the end of June 2021, banks had restructured loans amounting to KSh 423.6 billion, or 13% of total banking sector loans, as per the CBK's Annual Banking Supervision Report.
The measures, which were announced in 2020 and ended on March 31, 2021, aimed to provide relief to borrowers, support the continued operations of businesses, and strengthen the resilience of banks.
Of the restructured loans, 92.3% were performing, while 7.7% were non-performing. The CBK's efforts to support the banking sector during this challenging period were crucial in maintaining stability and promoting economic recovery.
According to the Supervision Report, the banking industry's balance sheet size grew by 11.4% from KSh 5.4 trillion in December 2020 to KSh 6.0 trillion in December 2021. Customer deposits also increased by 11% from KSh 4.0 trillion in December 2020 to KSh 4.5 trillion in December 2021.
As the banking industry continues to evolve, agility will be imperative in responding to changing customer needs and preferences. The CBK's emphasis on greening the financial sector and securing the planet's sustainability is also a welcome step towards a more sustainable future.
