Major digital lenders in Kenya have agreed to scarp the late repayment fees. This is meant to be a part of the measures put in place to support customers during this time of the COVID-19 outbreak.
The lenders who are part of the Digital Lenders Association (DLAK) that comprises of 17 member companies. These members include Tala, Branch, Alternative Circle, Stawika Capital, Zenka Finance, MyCredit, Okolea, LPesa, Kopacent, Vaell, Aspira and MicroMobile.
Others are Four Kings Investment T/A Sotiwa, Mobile Financial Solutions (MFS), Roamtech solutions, Kuwazo Capital, and Finance Plan Ltd.
“Customers are advised to seek more detailed information on the specific aspects of the waiver from their respective providers,” the lenders said in a statement.
“The move will cushion the customers who are under distress, following the slowdown in the economy after disruptions to their day to day operations that could have had an effect on regular income flow.”
DLAK further pledged support for President Uhuru Kenyatta’s directive on the temporary suspension of listing with the Credit Reference Bureaus (CRB) of any person,
This was also a follow-up from the CBK Governor, Patrick Njoroge who last week stated that lenders would work out repayments plans with their customers.
The ongoing outbreak has surely rendered businesses non-profitable and this is surely for an indefinite time. Most employees are forced to stay with many even being laid off. Especially for those in manual jobs, they are forced to be at involuntary leaves, some without pay. So, this is definitely a welcome decision from the lenders.
According to the CBK, banks are also set to review requests from borrowers for extension of their loans for a period of up to one year. Customers are also advised to contact their respective banks for any further information.