SMART MONEY

Relief for Loan Defaulters in Bank’s Stimulus Package

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Joshua Oigara CEO KCB Kenya www.businesstoday.co.ke
KCB CEO and MD Joshua Oigara. He says that bank customers should follow guidance given by staff in branches during this period, including regarding the 1 metre or 3 feet social distancing guidance. [Photo/ Kenyans.co.ke]
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KCB and Safaricom have committed to support customers in financial distress, making available more affordable lending and cutting transaction costs on mobile as part of the measures to assist the country to grapple with the effects of the Coronavirus pandemic.

The announcement — which follows a meeting hosted by President Uhuru Kenyatta in Nairobi last Wednesday, bringing together banking industry players — will see KCB Bank set aside Ksh30 billion in a stimulus fund for onward lending to KCB M-PESA customers during the next 90 days.

Repayment periods

The fund will allow for higher borrowing limits for qualifying customers and extended repayment periods for borrowers with existing facilities.

Other relief measures available to individual customers, and small business owners will include renegotiations of the loan contracts to either allow repayment moratoriums or extending the repayment periods up to one year. KCB will foot the legal costs associated with loan restructuring.

“We stand with Kenyans and all our customers at this time as our country and the world grapples with the pandemic. Our firm priority remains ensuring that our employees, customers, business partners and the entire population remains safe and free from the virus,” said KCB Group CEO and MD, Mr Joshua Oigara.

He said KCB has a role to continue supporting the economy and stimulating growth. “The best remedy as our economy starts to slow down is to support our customers to get along with their lives and to protect jobs by providing additional lending. We have been in crises before, but if we pull together, even in this environment, we will get the solutions Kenya needs,” he said.

KCB and Safaricom will also open the door to customers who had been blacklisted at the Credit Reference Bureaus (CRBs) but have since cleared their facility.

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“We shall open credit limits to those customers who had been listed because of defaulting on small amounts, but who are now repaying their loans. Customers who need relief are advised to get in touch with us to work out the respective support areas,” said Mr. Oigara.

KCB has more than 22 million customers who borrowed Ksh212 billion in 2019 on its KCB-MPESA mobile lending platform, which is operated in partnership with Safaricom.

Low mobile charges

These measures add to the zero-rating of bank-to-mobile and mobile-to-bank transactions to increase the usage of digital channels as opposed to cash in order to reduce the risk of transmitting the virus.

“Our goal remains ensuring that our customers and our nation comes out of this storm strong together to continue the work of nation-building. This is the time to stand shoulder to shoulder, to ensure that no one is left behind when this is all over,” said Mr Oigara.

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17 Comments

  • Am blacklisted with CRB but now am repaying my loan before this issue of Corona covid-19 came in. Am I eligible for soft loan to sustain me ?

  • How do I get in contact with persons concerned because I was blacklisted but I’m not a defaulter with any bank or any money lending institution now? Barclays Bank, who my name was listed under, denied having put my name on CRB. Where should I go for help?

  • This is not true. I personality needed a loan and went to my banker’s today, but I was told that I cannot get a loan when I’m one of the defaulters, and I asked again whether I can be given some money like 75% of the amount written on my LPO was told that I can’t get any. I even tried to ask for a loan through my mobile banking still I cannot access any loan. Now which mobile banking, and which banks are giving out loans to defaulters???

  • Are you sure this isn’t PR? Someone whispered to me that he can’t still access a facility from kcb despite repaying the 1 (one)shilling he was blacklisted having defaulted.
    Be sincere Mr oigara my village mate.

  • Hey Kcb,
    My names are Martin Mwangi l have an account with you kcb l have been late to pay my loan with one day during this period of Corona virus. I wanted to pay and ask for another loan, is it possible. Kindly me keep updated. Thank you.

    Kind Regards,
    Mwangi

  • How about those who have defaulted due to retrenchment and need funds to do some business.

    Can’t the government consider unlisting them?

  • I think it is just put, I have been trying for a long time but they denied me a loan kcb mpesa.

  • This is a hoax. Yesterday the 25th March, I was still charged the normal facility fee and only given one month to pay back. My limit was also not increased at. KCB is taking advantage of the current situation to seek for publicity.

  • Kcb. Don’t Say Anything. It’s Impossible. U r Enjoying Kenyans. I’m in CRB after I was suspended from my job. I have tried not once. But you decline. I paid my loan more than one yearr ago. U say I was late. So stop cheating that you are lending loans.

  • I paid my KCB mpesa loan late but all of it at once and denied another loan for the last 5 months. As well I paid my salary advance late in one month in the middle of the said period and honestly paid all the rest of three months and cleared completely. I was again denied access of another loan. This is quite unfortunate. I regret having an account with KCB.

  • I have been trying to borrow salary advance for the last 5months but every time i am told it is under review. I tried yesterday and i was informed that i am listed with CRB.. I really need this loan. Please help KCB..

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