28 Jan, 2021 06:45 am

Kenya: Restructured Loans Hit Sh1.6 Trillion

Commercial banks have now restructured loans amounting to Sh1.63 trillion, which is more than half of all loans in the country due to the Covid-19 pandemic.

"These measures have continued to provide the intended relief to borrowers," CBK Governor Dr Patrick Njoroge said in a statement that announced the latest Monetary Policy Committee (MPC) decision.Dr Njoroge said the operationalisation of the Credit Guarantee Scheme for the vulnerable Micro Small and Medium sized Enterprises (MSMEs), will de-risk lending by commercial banks, and is critical to increasing credit to this sector.In the January 27 meeting, Dr Njoroge said the MPC assessed the outcomes of its policy measures deployed since March 2020 to mitigate the adverse economic effects and financial disruptions from the pandemic.Njoroge said the MPC conducted its Private Sector Market Perceptions Survey this month that revealed expectations of strong economic activity over the next two months, and greater optimism on the economic prospects in 2021.

"Respondents also indicated that orders for flower exports over the next four months are expected to remain strong, but with a risk of potential disruptions from a tightening of Covid-19 containment measures in key markets," Dr Njoroge said.This is after borrowers, hard hit by the health crisis, took advantage of the relief announced by the Central Bank of Kenya (CBK).

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