Members of the Digital Lenders Association (DLAK), which represents 17 major digital lenders in the Country, have today agreed to waive the late repayment fees as part of the measures to support customers during this time of the COVID-19 outbreak.
The COVID-19 pandemic has had business close down indefinitely, and most employees have to stay at home to flatten the curve of spreading the virus. Especially fr those people who do manual jobs, it will be difficult for them to repay the loans, which are now a source of their livelihood.
Central Bank of Kenya Governor Patrick Njoroge. During a briefing last month on the impact of the Coronavirus on the Country’s economy. He stated that lenders would work out repayment plans with their customers. To allow them to repay the loans for up to a year period.
Banks will review requests from borrowers for extension of their loan for a period of up to one year. They are advising that customers contact their respective banks.
Since then, most banks and Telco’s have scrapped off transaction fees for their customers.
The move will cushion the customers who are under distress especially financial. Following the slowdown in the economy after disruptions to their day to day operations that could have affected regular income flow. However, customers have to seek more detailed information on the specific aspects of the waiver from their respective providers.
The Association also supports the Presidents’ directive on the temporary suspension of the listing with Credit Reference Bureaus (CRB). For any person, Micro, Small and Medium Enterprises (MSMEs) and corporate entities. Whose loan account falls overdue or is in arrears, effective 1st April 2020.