Absa Bank Kenya PLC announced that it has restructured over 50,000 loan facilities amounting to over KES54 billion as part of its commitment to cushion customers from the adverse economic impact of the COVID-19 pandemic.
The bank’s loan relief programme covers all types of credit types including personal loans, mortgages, asset financing and business loans among others. Under this programme, customers qualify for an initial relief of up to three (3) months which can be further reviewed on a case by case basis.
More than 90% of the restructured loans are in the personal and small business segments with the remainder split between mid-sized companies and large corporates.
“We are faced with a significantly complex situation as a country and we must do our best to manage the medical aspects of the pandemic whilst minimizing its adverse impact on the economy. We recognize that it is a hard time for our customers with a lot of businesses having scaled down operations and others closing down. This has resulted in strained cash flows for some of our customers and we are working together with them through this loan relief programme to reduce the burden on their monthly financial obligations,” said Jeremy Awori, Managing Director, Absa Bank Kenya.
Customers are not charged any extra processing fees to get the repayment relief. However, during the repayment holiday, interest continues to accrue on and the customer’s loan repayment period is extended to accommodate the relief.
“Coronavirus is not just a health crisis but also a major economic crisis which has hit our economy hard. We encourage customers who may be going through tough financial times to reach out to us so that we can jointly explore suitable relief options. Customers with scheme/check-off loan arrangements are encouraged to engage their employers so they can in turn reach out to the bank and agree on applicable repayment relief,” Mr Awori said.In addition to the loan relief programme, Absa continues to support its business customers through training and mentorship programmes offered through bi-weekly webinars featuring subject matter experts.
Further, the bank has committed a contribution of KES50 million to the fight against COVID-19. As part of this commitment, the bank delivered 210,000 facemasks comprising of 10,000 KN-95 masks for medical workers and 200,000 3ply masks other caregivers and other frontline workers. The masks were donated to Kenyatta National Hospital, Kenyatta University Referral Hospital and Coast General Hospital. The bank has also distributed an additional 30,000 reusable facemasks to boda boda riders and newspaper vendors across the country.