NAIROBI, Aug 31 (Reuters) – Kenya’s central bank must approve any plans by industrial lenders to situation dividends for this 12 months, it stated in a memo to bank executives seen by Reuters on Monday, an uncommon transfer attributable to the coronavirus disaster.
Lenders within the East African nation have seen their earnings plunge within the first half of this 12 months, hit by greater provisions for unhealthy loans, on the again of the COVID-19 pandemic.
They’ve additionally needed to restructure greater than 1 / 4 of complete buyer loans, to offer aid to people and companies hit by the disruptions.
All lenders are required to resubmit their inner capital adequacy assessments by the top of October, the central bank stated within the memo, reflecting the influence of the pandemic.
They can even be anticipated to debate their plans with the regulator, earlier than making choices on distribution of earnings to their shareholders, the memo stated.
“The period and extent of the pandemic stays unsure and it’s vital that these establishments stay resilient by strengthening their steadiness sheets,” the central bank stated.
(Reporting by Duncan Miriri; Enhancing by Toby Chopra)
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