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Friday, November 25, 2022 –The NCBA bank has said it will waive at least Sh.5.5 billion in defaulted Fuliza and M-Shwari loans under the Central Bank of Kenya-guided credit repair program.
According to NCBA Group Director, Digital Business Eric Muturi, the bank has carved out Sh11 billion from its bad digital loan book for the credit repair initiative which will see at least half of the balances or Sh.5.5 billion waived off.
The entire sum of Sh11 billion in defaulted Fuliza and M-Shwari loans presently stands written off and fully provided for under IFRS-9 banking standards.
Entirely, the banking industry is expected to forgive Sh.15 billion worth of digital loans with the total value of loans under consideration for the credit repair program standing at Sh.30 billion.
“We are looking as far back as ten years. Most digital lenders have only existed probably in the past three years or so. We were the first to do mobile-centric digital lending. Our stock of loans when you look at our history tends to be the largest,” he said.
NCBA estimates its digital loan customers from whom beneficiaries of the credit repair program will stem from at five million customers with loans being underwritten through Fuliza and M-Shwari.
The Kenyan DAILY POST