Tuesday, Jan 25, 2022
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Co-op Bank restructures loans worth Sh39.2 bn to support distressed clients

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The revenue streams of several businesses have been severely impacted by the protracted pandemic

Co-operative Bank of Kenya has restructured loans worth Sh39.2 billion in an effort to support borrowers severely affected by the protracted pandemic. Co-op Bank Group MD Gideon Muriuki, while releasing the bank’s financial results for the second quarter of the year, pointed out that the revenue streams of several businesses have been impacted by the ongoing crisis. 

In addition, Muriuki told the media, “We are actively engaging our customers to support them through this period by re-aligning servicing of facilities, funding and transactional needs as the situation unfolds.”

The Central Bank of Kenya allowed banks to offer relief to customers who are affected by the pandemic. The move was made in mid- March this year. According to the apex bank’s data, the total loan restructured was at Sh2.9 trillion by the end of June from the total banking sector’s loan book of Sh679.6 billion in May. That said, personal and household loans reached Sh240 billion, which is equal to 30 percent of all loans in the sector, media reports said. :We have fortified our digital channels to support uninterrupted access to banking services by our customers. At least 90 per cent of services are away from counters,” Muriuki said.

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