COVID-19 INTERVENTIONS

Relief for KCB Customers as lender restructures Sh115 billionin loans

Since mid-March, the lender has approved the restructuring of Sh91.3 billion worth of corporate loans

In Summary
  • The debt-relief measures have seen customers apply for their loans to be restructured, credit lines expanded and loan tenures extended to keep them financially afloat.
  • The relief accommodation is being extended to distressed customers upon request and on a case-by-case basis, based on their circumstances arising directly from the pandemic.
KCB CEO Joshua Oigara
KCB CEO Joshua Oigara
Image: FILE

KCB Bank customers will benefit from restructured facilities worth over Sh115.1 billion as the bank seeks to cushion them against the effects of COVID-19.

The debt-relief measures have seen customers apply for their loans to be restructured, credit lines expanded and loan tenures extended to keep them financially afloat.

Since mid-March, the lender has approved the restructuring of Sh91.3 billion worth of corporate loans and an additional  Sh20.4 billion in loans to mortgage customers, further Sh3.4 billion for retail customers has also been approved.

“Customers can still seek deferment of loan payments on their personal, business, corporate and housing loans for disruptions caused directly by the COVID-19 pandemic,” said KCB Group CEO and MD Joshua Oigara.

“We made a promise after the pandemic that we would walk the difficult journey ahead hand in hand with our customers,” he added

The relief accommodation is being extended to distressed customers upon request and on a case-by-case basis, based on their circumstances arising directly from the pandemic.

For personal check-off loans and scheme loans, upon request by the individual borrower and the employer (corporate) respectively, the customers can enjoy an extended moratorium benefit for a period by 3 months.

Residential and commercial mortgages customers are getting a moratorium on the principal or both principal and interest for 3-6 months with interest being capitalized monthly as it falls due.

However, the Bank could still extend the moratorium for a maximum of 12 months, depending on the severity of the COVID-19 effects on the customer’s business.

On the other hand, micro, small and medium-sized enterprises (MSMEs) can opt for repayment moratorium of 3 months; waived negotiation fee for restructured facilities; and extension of period for up to 3 months as part of their debt relief accommodation.

customers can opt for capitalization of principal and interest in arrears as at March 31, 2020, as well as capitalization of future interest for 3-6 months based on cash-flows. Further, the Bank also avails a 3-6 months’ moratorium on principal on deserving sectors.

The Bank will meet all the costs related to the extension and restructuring of loans.

Customers who wish to access the relief are encouraged to contact the Bank either through their relationship manager or contact centre or by visiting any of our branches.