“Measures are meant to cushion the impact on some of the most vulnerable in our society”
– Dr. Patrick Njoroge
All cash received by the Central Bank of Kenya from commercial banking institutions shall be quarantined for at least one week before recirculation. This is one among a raft of measures East Africa’s largest economy is taking to mitigate the unprecedented shocks associated with the spread of the corona virus outbreak that has sent shock waves across the global economy.
Banks will seek to provide relief to borrowers on their personal loans based on their individual circumstances arising from the pandemic to extend their loans for a period of up to one year. All current loans (from March 2nd) are eligible to this consideration, specifically personal loans.
Borrowers including Small and Medium Sized Enterprises (MSMEs) and corporates will be required to contact their respective banks to initiate the process.
In addition, banks are to waive all charges on balance inquiry to facilitate increased use of mobile digital platforms. All transfer charges between mobile money wallets and bank accounts have been eliminated.
Central Bank Governor Dr. Patrick Njoroge in an address to the country’s President Uhuru Kenyatta said the measures “are meant to cushion the impact of some of the most vulnerable in our society.” About 28% of total loans in Kenya are personal loans.
The Corona virus that broke out in December 2019 in Wuhan, China has and continues to have unprecedented effects on the global economy. According to the United Nations economists, the virus could cost the global economy at least $1 Trillion this year and perhaps far more. Countries around the wold have imposed travel restrictions posing an inevitable challenge to globalisation gains.