Pay cuts force workers to restructure Sh102bn loans
Friday, May 22, 2020 9:00
By OTIATO GUGUYU
Central Bank of Kenya Governor Patrick Njoroge.
PHOTO | COURTESY
Job and pay cuts in the wake of the Coronavirus pandemic have forced workers to restructure bank loans worth Sh102 billion by the end of April, highlighting the impact of the disease on the Kenyan economy.
The Central Bank of Kenya (CBK) Thursday disclosed that 29 banks have reviewed the terms of personal loans equivalent to about 13 percent of credit offered to workers on the strength of their pay slips.
The bulk of the restructured personal loans involve placing a moratorium on both interest and principal payments for up to one year, CBK Governor Patrick Njoroge said during a panel discussion hosted by the Kenya Private Sector Alliance (Kepsa).
CBK did not comment on the potential impact of the loan restructuring on banks’ earnings this year.
