Kenya: Stanbic Offers Alternate Short-Term Loan Repayment Plan Over Virus Meltdown

Nairobi — Stanbic Bank Kenya has offered a short-term repayment plan for SMEs and its customers to cushion them against the negative impact of coronavirus outbreak.

In a statement on Sunday, Stanbic Bank Kenya's Chief Executive Charles Mudiwa said the move is to assist the debtors and the bank create a suitable plan to clear their loans at a time when coronavirus has brought the country's activities to a standstill with businesses missing their revenue targets.

"We recognize that we are collectively affected by the Coronavirus pandemic (COVID-19) and strive to put in place contingency plans to mitigate against disruption to our customers," said Mudiwa.

"The reality is SMEs are going through a tough period. We are therefore committed to unlocking new solutions to allow them to continue to run their businesses efficiently," he added.

Commercial clients can, therefore, contact the bank for assessment and restructuring of their loans based on their respective industry circumstances from the pandemic while SMEs can have an extension for up to 3 months.

The loan holiday, which is effective tomorrow, is a voluntary initiative where interested parties are to apply by the end of today.

To apply, one is therefore required to send an SMS to 22208 that reads "YES RH" from the number one is registered on mobile banking.

Other plays that have moved to ease the pressure for its borrowers include ABSA Bank Kenya who provided its customers with active personal and business loans, to discuss a favorable repayment plan.

The lender has further allowed customers to restructure their loans by reducing their monthly installments over a period of up to one year or take a short-term repayment holiday.

The Nairobi Securities Exchange-listed bank had announced that it will also assess the impact of the coronavirus on medium-sized enterprises and corporate borrowers and look to support them.

The Central Bank of Kenya had early this month requested the banking sector to consider measures that will soften pressure on borrowers as they support the fight against the spreading virus that has claimed over 31,000 lives globally.

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