Absa Bank Kenya restructures loans amounting to Sh54 billion

Absa Bank Kenya has restructured over 50,000 loan facilities, management has said, amounting to over Sh54 billion.

This is part of its commitment to cushion customers from the adverse economic impact of the Covid-19 pandemic.

The former Barclays Bank Kenya’s loan relief programme covers all types of credit types including personal loans, mortgages, asset financing and business loans among others.

Under the programme, customers qualify for an initial relief of up to three months which can be further reviewed on a case by case basis.

More than 90 per cent of the restructured loans are in the personal and small business segments with the remainder split between mid-sized companies and large corporates.

“We are faced with a significantly complex situation as a country and we must do our best to manage the medical aspects of the pandemic whilst minimizing its adverse impact on the economy,”said Jeremy Awori, Managing Director, Absa Bank Kenya.

He said the bank recognizes the hard time its customers are facing during this pandemic, where a lot of businesses have scaled down operations and others closed down.

“This has resulted in strained cash flows for some of our customers and we are working together with them through this loan relief programme to reduce the burden on their monthly financial obligations,” Awori said.

Customers are not charged any extra processing fees to get the repayment relief.

However, during the repayment holiday, interest continues to accrue on and the customer’s loan repayment period is extended to accommodate the relief.

“Coronavirus is not just a health crisis but also a major economic crisis which has hit our economy hard. We encourage customers who may be going through tough financial times to reach out to us so that we can jointly explore suitable relief options," Awori said.

Customers with scheme/check-off loan arrangements are encouraged to engage their employers so they can in turn reach out to the bank and agree on applicable repayment relief,he added.

In addition to the loan relief programme, Absa continues to support its business customers through training and mentorship programmes offered through bi-weekly webinars featuring subject matter experts.

Further, the bank has committed a contribution of Sh50 million to the fight against Covid-19.

As part of this commitment, the bank delivered 210,000 facemasks comprising of 10,000 KN-95 masks for medical workers and 200,000 3ply masks to other caregivers and frontline workers.

The masks were donated to Kenyatta National Hospital, Kenyatta University Referral Hospital and Coast General Hospital.

The bank has also distributed an additional 30,000 reusable facemasks to boda boda riders and newspaper vendors across the country.