Kenyan banks restructured loans worth KShs 1.12 trillion equivalent to 38 percent of the total loan book by end of August the Central Bank says.
CBK said this was in line with the emergency measures announced March 18 to provide relief to borrowers. “These measures have continued to provide the intended relief to borrowers,” said Dr. Patrick Njoroge, Chairman monetary policy Committee when they met Tuesday.
According to the regulator’s data, personal and household loans topped the list with KShs 271 billion in the period.
For other sectors, a total of Ksh 849.9 billion had been restructured mainly to trade (20.7 percent), manufacturing (20.2 percent), real estate (18.3 percent) and agriculture (11.1 percent).
In addition, Dr Njoroge maintained that “The banking sector remains stable and resilient, with strong liquidity and capital adequacy ratios.”
The ratio of gross non-performing loans (NPLs) to gross loans stood at 13.6 percent in August, compared to 13.1 percent in June. NPL increases were noted in the real estate, personal and, transport and communication sectors, due to a subdued business environment.