Banks to extend loan repayments by one year as coronavirus hits hard economy

With the wolrd already feeling the heat of coronavirus pandemic, countries have come up with drastic measures to cushion their citizens against tough economic times.

Kenyan government has not left anything to chance and it has put forward outstanding measures to alleviate the adverse effects of coronavirus.

In a televised address from State house,  president Uhuru Kenyatta listened to measures banking industry has put in place.

CBK Governor Patrick Njoroge, said that all cash cash exiting banks will be quarantined for one week to ensure the virus is not transmitted through handling of cash.

“To ensure the virus is not transmitted via cash, all cash exiting banks will be quarantined for 1 week, said Patrick Njoroge.

He further said that mobile money transactions shall be enhanced with the limit per transaction now at Ksh. 150,000 & monthly limit of Ksh 1 Million eliminated.

The CBK boss said that banks will also seek to provide relief to borrowers on their personal loans based their individual circumstances arising from the coronavirus pandemic.

In addition to above measures, CBK Governor said all  loans that were current as of 2 March will be eligible for a one-year repayment extension.

President Uhuru Kenyatta cautioned business persons taking advantage of the coronavirus situation to rise prices of essential commodities.

“There is nothing wrong with making profit, but it is highly immoral to take advantage of the situation”, said head of state.

“We will take action against those who are hiking prices of essential goods like food and sanitizers”, added President Uhuru.