Absa Kenya has restructured over 50,000 loan facilities amounting to over Ksh 54 billion as a relief to customers who have been hit by the coronavirus pandemic, it said on Friday.
In a statement, the bank says loan relief programme covers all types of credit types including personal loans, mortgages, asset financing, and business loans among others.
Under the programme, customers qualify for an initial relief of up to three (3) months which can be further reviewed on a case by case basis.
More than 90 percent of the restructured loans are in the personal and small business segments with the remainder split between mid-sized companies and large corporates.
“We recognise that it is a hard time for our customers with a lot of businesses having scaled-down operations and others closing down. This has resulted in strained cash flows for some of our customers and we are working together with them through this loan relief programme t reduce the burden on their monthly financial obligations,” said Jeremy Awori, Managing Director, Absa Kenya.
The bank further adds that during the repayment holiday, interest will continue to accrue on and the customer’s loan repayment period is extended to accommodate the relief.
“Coronavirus is not just a health crisis but also a major economic crisis which has hit out economy hard,” says Awori.
“Customers with scheme/check off-loan arrangements are encouraged to engage their employers so that they can in turn reach out to the bank and agree on applicable repayment relief,” he added.
Kenya has 152 confirmed cases of the COVID-19 disease caused by the virus as of Saturday, June 13. The Ministry of Health said 3,106 out of the 3,457 confirmed cases are local transmissions, accounting for 89 percent of the cases.