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Arrival of Covid-19 vaccines to bolster economic activities, says KBA – KBC | Kenya’s Watching

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Local commercial banks say a second or third wave of the Covid-19 pandemic will lower lending activities as most borrowers will struggle to service their loans due to Covid-19 restrictions.

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Kenya Bankers Association Chair Joshua Oigara is however optimistic that the arrival of Covid-19 vaccines in the country will ease the current restrictions and shore up economic activities.

The second wave of the Coronavirus that is spreading in some European nations will further affect Kenya’s exports as some major destinations such as Britain have announced lockdowns to try and contain the virus.

The Kenya Bankers Association predicts that such new waves in the country and around the globe will affect the country’s economy.

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KBA says the restrictions such as curfews will affect businesses especially those in the SME sector that might be forced to shut down due to liquidity challenges.

The association adds that a suppressed economic environment will reduce lending activities as most borrowers will be categorised as high risk.

However the Association Chair Joshua Oigara is optimistic that the newly developed Covid-19 vaccines will contain the virus leading the country’s economy to pick up in the first half of 2021, with trade, transport, and manufacturing sectors as key drivers of the growth.

Financial institutions have been advised to leverage on mobile banking growth to increase their market penetration especially in rural areas.

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