Banks under pressure to relax loan terms as coronavirus bites

In the glaring effects of the Coronavirus on businesses in Kenya, financial institutions have been asked to go slow on collecting loans as the public transport businesses are taking hits.

The chairperson of the Matatu Owners Association, Simon Kimutai, on Monday asked financial institutions to amend their loan recollection at least for the period that the country faces tough times in the business sector.

Matatu Owners Association Chair Simon Kimutai. He asked Banks to relent on loans owed by matatus.

Speaking in Nairobi at the Railways Station on Monday, Kimutai emphasised that it will be fair for the institutions to work jointly with their clients who owe them, to sustain the transport business in Kenya, as most of the public transport vehicles are financed by loans from banks and other financial institutions.

Kimutai was accompanied by the Cabinet Secretary for Transport James Macharia.

Matatu Welfare Association chair Dickson Mbugua also encouraged bus conductors and passengers to transact in soft means (via mobile money sending) and cards as this would lower the risk of contracting Coronavirus. Most bus conductors collect fares in cash.

So far, public service vehicles allow passengers to pay via mobile money channels such as M-PESA, Airtel Money, and T-Kash while digital application taxis accept payment using bank cards.

Kenya has so far reported three Coronavirus cases prompting the government to close down schools, public gathering and encourage working from home.