Relief to Borrowers After CBK Intervention

CBK Governor Dr Patrick Njoroge
CBK Governor Dr Patrick Njoroge 
It is already a tough time for borrowers due to the ongoing Coronavirus pandemic. Borrowers can't repay their loans as planned.

The Central Bank of Kenya (CBK) recently announced a bad trend on the rise. The number of non performing loans is growing at an alarming rate! The total now standing at over ksh 360 billion.

The banking community is shaken. It is therefore likely that borrowers will not get loans easily as usual which is a big blow especially during this hard times.

There's a minimum ratio between non performing and gross loans that is acceptable by the CBK for a lender to continue doing business. As things are, most lenders are out of the minimum ratio required.

For this reason lenders hand to plead with the Central Bank to loosen its strict rules concerning the ratio so that the lenders can continue helping borrowers especially at this low economic times.

The Central Bank is therefore allowing lenders continue giving out loans and repayment holidays in order to cushion Kenyans against the virus negative economic effects.

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