Lenders continue to restructure their clients’ loans with amounts that have received relief doubling in about a month.
According to the National Treasury, banks have restructured loans amounting to Sh360 billion. This includes Sh190 billion in personal loans.
The restructuring includes suspending loan repayments for a fixed period and increasing repayment periods. These are among measures local banks have taken to cushion borrowers affected by the coronavirus pandemic.
On Friday, Absa Bank said it has restructured over 50,000 loan facilities amounting to over Sh54 billion. It added that more than 90 per cent of the restructured loans are in the personal and small business segments, with the remainder split between mid-sized companies and large corporations.
SEE ALSO: Co-op Bank acquisition of Jamii Bora gets final approval
“We recognise that it is a hard time for our customers with a lot of businesses having scaled down operations and others closing down,” Jeremy Awori, the managing director of Absa, said.
“This has resulted in strained cash flows for some of our customers and we are working together with them through this loan relief programme to reduce the burden on their monthly financial obligations.”
Stanbic also said it has restructured loans worth Sh31 billion, for both individual customers with personal loans and businesses.
“The bank provided loan repayment holidays to both individuals, Small and Medium-Sized Enterprises (SMEs) and corporations. We have restructured loans worth over Sh31 billion,” said Maurice Matumo, head of Personal and Business Banking, Stanbic Bank Kenya.
SEE ALSO: Uhuru sets up transport logistics network
Leonard Mudachi, Managing Director Intesrtrat Ltd, which is among companies that have 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.