Banks open to loan restructuring as higher rates, inflation raise defaults

Kenya’s KCB Bank

Customers being served at a KCB branch in Nairobi, Kenya. PHOTO | SIMON MAINA | AFP

East Africa’s retail banks have announced measures to cushion borrowers from the prevailing hard economic conditions, precipitated by rising interest rates and inflation.

Listed lenders have reverted to the Covid-19 debt relief measures, including debt restructuring and loan repayment moratoria, to bail out struggling businesses and households.