× Business BUSINESS MOTORING SHIPPING & LOGISTICS DR PESA FINANCIAL STANDARD Digital News Videos Health & Science Lifestyle Opinion Education Columnists Moi Cabinets Arts & Culture Fact Check Podcasts E-Paper Lifestyle & Entertainment Nairobian Entertainment Eve Woman Travelog TV Stations KTN Home KTN News BTV KTN Farmers TV Radio Stations Radio Maisha Spice FM Vybez Radio Enterprise VAS E-Learning Digger Classified Jobs Games Crosswords Sudoku The Standard Group Corporate Contact Us Rate Card Vacancies DCX O.M Portal Corporate Email RMS
×

Tough times as CBK announces expiry on restructuring of loans

BUSINESS
By Betty Njeru | March 23rd 2021

Central Bank of Kenya Governor Patrick Njoroge. [David Gichuru, Standard]

The Central Bank of Kenya (CBK) has announced the expiry of measures on restructuring of loans for bank borrowers, following the lapse of the one-year allotment.

CBK introduced the measures last year in March to cushion customers seeking relief from the effects of the coronavirus.

Among them was restructuring by banks for loans that were performing as at March 2, 2020 and the provision of regulatory flexibility to banks by CBK.

Loan borrowers whose loans were performing before March 3, 2020 but were restructured now have until June 3 (three months) to regularise their loans.

CBK avers that the measures put up were highly affective.

“The measures have provided space to borrowers to ride through the pandemic, mitigate job losses and pivot their business models to the new normal,” CBK said in a statement on Tuesday.

In a year’s time since March 2020, loans totaling to Sh1.7 trillion were restructured. According to CBK- this accounts for 57 per cent of the banking sector’s gross loans.

“Following the resumption of repayments and some pay-offs, the outstanding restructured loans as at February amounted to Sh569.3 billion (19 per cent of gross loans).”

CBK added that as stands, over 95 per cent of the loans are being repaid as per the restructuring terms.

Some of the restricting options included the extension of the loan repayment period and waivers on interest or fees.

Banks were to meet the costs related to the extension and restructuring of loans. They were also asked to waive certain charges such as balance inquiry through digital platforms.

But in that same period, Kenyan banks have paid the ultimate price for keeping the economy afloat.

Share this story
Kenya's trade deal with UK now in force
Some tariffs start to reduce after seven years. Some will not be effective until 12 years and will continue reducing slowly until 2046.
Dog walking becomes the newest hustle in town
Dog walking is now a status symbol. Owning a pet is cool. I nowadays meet lots of Kenyans and foreigners walking their dogs and some running.
.
RECOMMENDED NEWS
Feedback