Banks will now extend personal loans for a period of one year.
Central Bank of Kenya Governor Patrick Njoroge during a briefing on the impact of the Coronavirus on the Country's economy at State House Nairobi, on March 18 stated that lenders would work out repayment plans with its customers with loans due this period.
"Banks will review requests from borrowers for extension of their loan for a period of up to one year. Advising that they contact their respective banks," Njoroge stated.
He also has directed that to increase the use of mobile digital platforms, all banks waive fees on balance enquiries, further stating that SMEs can also have discussions with their banks on the structure of their loans.
Medium-Sized Enterprises and corporate borrowers can contact their banks for assessment and restructuring of their loans based on their respective circumstances.
"We do not want this crisis to become a financial crisis. All cash that will be coming out of banks will be quarantined for one-week," Njoroge stated.
Njoroge informed that the banks would provide relief to borrowers on their personal loans based on their individual circumstances arising from the pandemic.
Njoroge stated that banks will meet all the costs related to the extension and restructuring of the loans.
"As earlier announced, all charges for transfers between mobile money wallets and bank accounts will be eliminated," Njoroge announced.
CBK will closely monitor the implementation of these measures particularly in light of the fast-evolving nature of the economic impact of the pandemic.
President Uhuru Kenyatta while addressing the lenders urged them to lower transaction fees so as to minimise physical contact of money, that may allegedly further the spread of the Coronavirus.
He stated that the move depicts the lenders as patriots rather than just business people.
"We are grateful for the measures you have taken. This is patriotism. We appreciate your efforts (Banking industry, CBK) in trying to help Kenyans overcome the fiscal challenge. We need each other as Kenyans," the head of state stated.
The head of state warned traders who intended to make profits from the unfortunate situation the country is in. He stated that the government had already embarked in action against traders who had hiked prices.
"It is time for us to pull together as a nation. Am convinced we will overcome this problem. Let's minimise the economic impact brought about by this problem. Let us not take undue advantage," President Kenyatta stated.
