Banks to extend loan repayments by one year as coronavirus effects hit economy

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Commercial banks have agreed to extend repayment of personal loans by a period of up to 12 months.

Addressing the press at State House in Nairobi on Wednesday, Central Bank of Kenya (CBK) Governor Patrick Njoroge said the measures are aimed at shielding the most vulnerable in the economy.

“Banks will seek to provide relief to borrowers on their personal loans based on their individual circumstances arising from the pandemic. All personal loans that were current on March 2 will be eligible to consideration of extension for a period of upto one year,” said the CBK boss.

Mr. Njoroge also added that all cash that will be coming out of banks will be quarantined for at least one week; a duration he said would be “more than enough time for the virus to become inactive.”