CBK governor Patrick Njoroge has suspended all measures that were implemented by the banks 6 months ago so as to cushion borrowers from the harsh economic hardship brought by the onset of the worldwide pandemic COVID-19.
During the MPC meeting, Patrick Njoroge said as from 1st october, banks will begin negotiations with their customers who will be given 3 months to pay what they owe the bank. He added that as from the beginning of October, all operations will go back to normal in banks which includes people being charged the full interest for the loans acquired.
Due to the economic hardships caused by COVID-19,CBK announced in April the suspension of CRB listing for defaulted loans. The aim of the suspension was to cushion people against the effects of the coronavirus pandemic that saw many people receive pay cuts and some even lost their jobs according to a survey by the Kenya National Bureau of Statistics.
However, according to CBK, the amount of loans acquired during this period has increased steadily with banks having restructured loans worth kes 1.12 trillion which is 38 % of the total banking sector.