KCB Group and Safaricom have set up a KSh 30 billion kitty that will be available to KCB-M-Pesa users. This offer, that will be valid for the next three months, is part of the firms’ commitment to assist those in financial distress arising from negative effects of COVID-19 pandemic.
This fund will increase borrowing limits for qualifying customers and lengthen the repayment period for borrowers servicing an existing loan facility.
Under this stimulus package, individual customers and small business owners will be allowed to renegotiate their loan facilities. The Bank will foot all associated legal fees arising from loan renegotiations. The options on the cards are either an extended loan repayment period upto one year or moratoriums.
“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,” said Mr Joshua Oigara, Chief Executive Officer, KCB Group.
The Bank and Safaricom will also open their doors to customers who had been blacklisted with the Credit Reference Bureaus (CRBs) but have since cleared their loans.
Available figures indicate that more than 22 million customers borrowed some KSh 212 billion on the KCB-MPESA platform in 2019.
Following a meeting with Central Bank of Kenya (CBK), banks scrapped charges for mobile based transactions to encourage cashless transactions.
KCB Group Plc remains the most profitable lender in Kenya with a network of 330 branches, 1,076 ATMs and over 18,818 merchants and agents across Kenya and East Africa.