Just a week after the Central Bank of Kenya(CBK) directed digital lenders to work with loan defaulters in helping them repair their credit scores, digital lending app Zenka has announced that it’s writing off a total of KSh 166 million in its debt books.
The beneficiaries of this move are borrowers with non-performing loans whose lives were adversely affected by the Covid-19 pandemic.
“As a socially responsible lender, we routinely and thoroughly analyze prevailing market situations and act proactively and pre-emptively to contribute to the country’s economic recovery by helping our customers regain their financial balance and grow,” said Zenka country manager Duncun Motanya.
The partial write-off is among the company’s responses to the shifting approach by the current government, which is bent on having more Kenyans access credit facilities as a way of expanding income capabilities.
The company says other measures such as an extended grace period for customers struggling to repay their loans will follow.
“Meticulous creditworthiness assessment combined with smart financial products and flexible repayment options enabled us to open up new possibilities to millions of Kenyans and motivate them to work harder and think smarter,” Motanya added.
The lender has also encouraged customers struggling to repay their loans to contact the lender to work out a friendly payment plan.
In a communication issued last week, CBK directed banks, microfinance and mortgage finance companies to write off at least Ksh.15 billion worth of digital loans, in a bid to help defaulters regain a favourable borrowing status. Defaulted digital loans are estimated at Ksh.30 billion, affecting approximately 4.2 million, according to CBK