KCB Renegotiates Loans Worth Sh80 Billion to Cushion Customers Affected by COVID-19

KCB Group has restructured loans worth Sh80 billion in Kenya which is equivalent to 15 percent of its’s Sh535.3 billion total loan record as of December 2019.

This comes as a relief to KCB customers who have been affected by coronavirus pandemic and are unable to pay their loans.

“As KCB we have restructured loans running into Sh80 billion,” said Joshua Oigara, chief executive of the country’s biggest bank by assets, adding that “this is mainly in the form of a three-month moratorium on interest and principal.”

KCB’s restructured loans amount to 45 percent of the total Sh176 billion loans renegotiated with other seven lenders including Equity Group, Co-op Bank and NCBA Group

Earlier, the Central Bank of Kenya (CBK) brokered for the restructuring of loans as it was expected that many households and corporate borrowers would struggle to pay their debts due to the COVID-19 effects.

CBK said it would be more flexible with regard to requirements for loan classification and provisioning for loans that were performing on March 2, 2020, and whose repayment period was extended or were restructured due to the pandemic.

In addition, CBK has said that requests for extension of personal loans and restructuring of other sectors’ obligations are expected to ramp up in the coming months if the pandemic continues to penetrate.