Sidian customers get more time to pay Sh5.7bn loans

Sidian bank chief executive officer Chege Thumbi. FILE PHOTO | NMG

Sidian Bank has restructured a Sh5.7 billion customer loans amid economic hardship caused by the Covid-19 pandemic on borrowers.

The lender’s chief commercial officer Timothy Gitonga said that the relief represents 29 percent of their total loan book.

Mr Gitonga added that a total of 2, 286 applications have been received as at October.

“The bank has restructured loans for our customers in the sectors that are affected by the pandemic to ensure that their businesses stay afloat as a result of the unexpected shocks that have been caused by the pandemic,” Mr Gitonga a said.

He however said that extensions come with a 12-month limit after which it can be extended if need be.

“The period extension will be based on the business environment as the pandemic continues to affect businesses,” he added.

Tourism, restaurant and hotel sector lead with most applications at 90 percent followed by mining and quarrying (84 percent), building and construction (62 percent) and manufacturing (51 percent).

Others being real estate (46 percent), agriculture (38 percent), transport and communication (30 percent), trade (27 percent) and personal and household (22 percent).

This comes after the Central Bank of Kenya in July said that banks had changed the terms of loans worth Sh844.4 billion by end of June, an equivalent of 29 percent of their total loan book.

Personal and household loans topped the list of debt restructured since March when the Central Bank of Kenya (CBK) allowed lenders to offer relief to distressed customers after the country reported its first coronavirus infection.

The CBK revealed that banks had by the end of June extended the repayment period of personal and household loans worth Sh240 billion.

This is an equivalent of 30 percent of the gross lending to this segment.