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· Commercial banks in Kenya restructured loans amounting to Sh1.63 trillion by the end of December to help borrowers from the harsh economic environment caused by the coronavirus pandemic
· The Central Bank of Kenya released data that showed that the loans, such as personal and household topped the portfolios of loans disbursed with Sh333 billion
· A total of Sh1.29 trillion had been restructured mainly to trade at 21.3 percent, manufacturing at 20.4 percent,real estate at 15.4 percent and agriculture at 12.4 percent to address the financial burden of the people
· The Central bank also infused Sh35.2 billion by lowering of the Cash Reserve Ratio (CRR) in March Sh 32.6 billion has been extended to sectors like tourism, trade and transport and communication, real estate, manufacturing and agriculture sectors
Commercial banks in Kenya restructured loans amounting to Sh1.63 trillion by the end of December to help borrowers from the harsh economic environment caused by the coronavirus pandemic.
The Central Bank of Kenya released data that showed that the loans, such as personal and household, topped the portfolios of loans disbursed with Sh333 billion. The repayment cycle of these loans has been rolled over to ensure some comfort to those who had availed them.
A total of Sh1.29 trillion had been restructured mainly to trade at 21.3 percent, manufacturing at 20.4 percent,real estate at 15.4
percent and agriculture at 12.4 percent to address the financial burden of the people. Despite these comforts extended to households, trade and industry the banking sector remained stable and resilient, with strong liquidity and capital adequacy ratios.
The gross non-performing loans (NPLs) to gross loans stood at 14.1 percent in December compared to 13.6 percent in October, which is in the comfort zone of the banks. However, NPL increases were noticed in the Transport and Communications, Trade, Real Estate and Agriculture sectors. These were attributable to the subdued business environment and did not go beyond the expectations of the banking sector in the country.
The Central bank also infused Sh35.2 billion by lowering of the Cash Reserve Ratio (CRR) in March Sh 32.6 billion has been extended to sectors like tourism, trade and transport and communication, real estate, manufacturing and agriculture sectors.
