Stanbic Bank Kenya will offer a loan holiday for SMEs and its personal banking customers as from April 1 to cushion them against the economic disruptions caused by the Coronavirus (COVID-19).
In a statement, Stanbic Bank Kenya’s Chief Executive Charles Mudiwa announced that the loan holiday would last three months.
“We recognize that we are collectively affected by the Coronavirus pandemic (COVID-19) and strive to put in place contingency plans to mitigate against disruption to our customers. The reality is SMEs are going through a tough period. We are therefore committed to unlocking new solutions to allow them to continue to run their businesses efficiently. We must keep Kenya moving, ” said Mudiwa.
Commercial clients are advised to contact the bank for assessment and a restructure of their loans based on their respective industry circumstances from the Pandemic.
“We are working closely with the Central Bank of Kenya (CBK) and the Kenya Bankers Association (KBA) to consult on extra measures that we can implement to protect our customers against the adverse economic effects of the Coronavirus pandemic (COVID-19),” Mudiwa added.
Customers who require the loan holiday have until March 30, 2020 to send in requests.
The move by Stanbic comes just a few days after Central Bank of Kenya (CBK) Governor Patrick Njoroge asked banks to extend loan repayment periods for their clients due to the impact of the Coronavirus pandemic on the economy.
“While the extent of the adverse effects is still evolving, it is already evident that the impact on some of the customers may be severe. To help alleviate the adverse effects, the banks will seek to provide relief to borrowers on their personal loans based on their individual circumstances arising from the pandemic,” Njoroge had said. “Banks will meet all the costs related to the extension and restructuring of loans.”