CBK Asks Banks to Extend Repayment Period of Loans Up to a Year Following the COVID-19 Menace

central bank of kenya

central bank of kenyaThe government of Kenya, among other key organizations in the state, has been at the forefront in shielding locals from the adverse effects of the COVID-19 pandemic. These measures started on Sunday when President Kenyatta advised mobile operators to adjust their rates accordingly to alleviate Kenyans’ economic constraints because many will be working from home, and the majority of them had not made the necessary financial arrangements to live through this hard period.

So far, mobile operators have waived fees for transactions under KES 1000 – and the same measure is said to be under consideration for commercial banks such as Equity Bank.

To this end, the CBK has introduced some emergency measures for borrowers whose loan repayments were up to date as of March 2, 2020.

Now banks have been advised to offer relief to borrowers on their personal loans based on individual situations arising from Coronavirus. The relief will be in the form of a new review method, for which borrowers will be given an extension to their loan period of up to one year. Borrowers are now being asked to reach out to their banks and start the exercise.

Medium-sized enterprises, as well as corporate borrowers, can also speak to their banks for assessment and restructuring of their loans based on the setbacks brought forth by COVID-19.

The costs related to the extension of the repayment period will be met by the banks.

Furthermore, all fees associated with checking balances for mobile digital platforms will be lifted. Also, as announced earlier, all charges for transactions between transfers between mobile money wallets and bank accounts will be waived too.