Kenya’s banking sector on Wednesday agreed to reschedule payments of personal loans for up to one year as part of the various measures aimed at cushioning Kenyans from the effects of the Coronavirus pandemic.
The Central Bank Governor, Dr. Patrick Njoroge announced that personal loans, which account for 28 percent of all borrowing from local commercial banks, that were current on 2nd of March this year will be eligible to the new arrangement.
“One of the things that we have agreed on is that the banks will seek to provide relief to borrowers on their personal loans based on their individual circumstances arising from the pandemic,” he said.
“So if you have a personal loan and it has been current until March 2nd and you are getting difficulties particularly because of the pandemic directly or indirectly, you can go to your bank and they can discuss with you extending it,” Dr Njoroge said.
He said for corporate borrowers and SME’s, the banks will be ready to hold discussions with them on restructuring of their loans.
The Central Bank Governor said costs of rescheduling and restructuring of loans will be borne by the banks.
On mobile banking, Dr Njoroge said banks have agreed to waive all charges for balance enquiry adding that the banking sector will carry out a public health awareness campaign on Coronavirus through their outlets.
Kenya’s Cabinet Secretary for health, Mutahi Kagwe on Wednesday confirmed that three more patients have tested positive for the corona virus, bringing total to seven.
JK/abj/APA