Kenyan banks warn of revenue loss as borrowers shielded from costs

Habil Olaka, chief executive of the Kenya Bankers Association (KBA). FILE PHOTO | NMG

Lenders in Kenya are warning that a raft of measures adopted to cushion Kenyan borrowers from the effects of the coronavirus pandemic could push them into a loans crisis.

The Central Bank of Kenya (CBK) issued guidelines that compel lenders to re-negotiate loan repayment terms with borrowers, including payment holidays and penalty waivers.