If you have any loan pay up or run as banks begin serious mass recovery of loans and they are using any means necessary to have their money back with CBK’s blessings

 Tuesday, March 23, 2021 – The Central Bank of Kenya (CBK) has announced the expiry of emergency measures to mitigate the adverse economic effects on loan borrowers from the Coronavirus.

From March 2, 2020 borrowers were provided with various restructuring options including the extension of the repayment period, a moratorium on principal or interest, and waivers on interest or fees.

However, according to a statement from CBK on Tuesday, March 23, banks have been given the go-ahead to resume the recovery of loans.

Local banks have already begun assessing the performance of all restructured loans that were performing before March 2, 2020. 

These include the restructured loans that were performing as of March 2, 2020, but went into arrears after that date.

Consequently, in accordance with standard procedures, borrowers whose loans were performing before March 2, 2020, but were restructured and subsequently went into arrears, will have three months (June 3, 2021 deadline) to regularize their loans.

Cumulatively, since March 2020, loans amounting to Ksh 1.7 trillion were restructured by the end of February 2021 accounting for 57 percent of the banking sector’s gross loans.

Following the resumption of repayments, the outstanding restructured loans as of February amounted to Ksh 569.3 billion, or 19 percent of the total gross loans.

Over 95 percent of the outstanding restructured loans are being repaid in accordance with the restructured terms.

CBK will continue to closely monitor the unwinding of the outstanding restructured loans to ensure the continued stability of the banking sector.

E! News Blog