Kenyan economy is bracing for a wave of job losses as the outbreak disrupts business

Banks will seek to provide relief to borrowers on personal loans based on their personal circumstances arising from the pandemic

Photo/Courtesy

In Brief

– CBK governor has reached a deal with the commercial banks to help reduce the economic pressure that individuals and businesses may encounter due to the coronavirus threat, which has already slowed down trade.

– “There will be those who will be forced to take half pay or will be laid off,” he said.

In a meeting held at Statehouse on Wednesday with the CBK governor, President Uhuru Kenyatta has cautioned Kenyans of looming job cuts due to the coronavirus outbreak.

“There will be those who will be forced to take half pay or will be laid off,” he said.

President Kenyatta has said more fiscal measures are expected to be rolled out in the near future to cushion Kenyans against the economic pressure brought about by the coronavirus outbreak.

Also Read: Government sets aside Sh3 billion in readiness for Coronavirus outbreak

This comes after some of the business owners in the country have been stating that businesses are bound to be bankrupt if the outbreak situation continues for long.

However, the CBK governor has reached a deal with the commercial banks to help reduce the economic pressure that individuals and businesses may encounter due to the coronavirus threat, which has already slowed down trade.

Also Read: Catholic University plans home studies just in case COVID-19 hits the country

Lenders and other financial institutions are expected to restructure their loans with customers in cases where borrowers are not able to honour their obligations on time, Dr Njoroge said.

Under the deal, the banks will offer short payment holidays or reschedules on loans payments of up to one year.

Also Read: Babu’s bail amount reduced from Sh10m to Sh5 million after plea in Court

“Banks will seek to provide relief to borrowers on personal loans based on their personal circumstances arising from the pandemic,” said the CBK boss.

Kenya Bankers Association (KBA) chairman, KCB chief executive Joshua Oigara said personal customers affected by the economic fallout from Covid-19 will be allowed payment breaks or flexible arrangements on home and other loans.


Do you have any news or article you would like us to publish? Kindly reach us via outreach@howto.co.ke or howtodoafrica@gmail.com