Kenyan banks have restructured KSh844.4 billion of loans, equivalent to 29 percent of the total outstanding loans of Ksh 2.9 trillion by the end of June, according to the Central Bank of Kenya (CBK).
CBK in a statement on Wednesday, following outcomes of its policy measures that have been deployed since March to mitigate the adverse economic effects and financial disruptions from the coronavirus pandemic, “These measures have provided the intended relief to borrowers,” said CBK Governor Patrick Njoroge.
Of this, personal and or household loans amounting to KSh 240 Billion (30% of the gross loans to this sector) have had their repayment period extended.
For other sectors, a total of KSh 604.4 Billion had been restructured mainly to trade (22.9%), real estate (19.5%), transport and communication (16.3%), and manufacturing (14.0%).
Non-performing loans(NPL) increased in the manufacturing, trade, and personal sectors, due to a subdued business environment,” said Dr Njoroge.
CBK figures show that the level of total non-performing loans (NPLs) to Gross loans stood at 13.1 percent in June, compared to 13.0 percent in May 2020.
Consequently, the regulator maintains that the banking sector remains stable and resilient, with strong liquidity and capital adequacy ratios.
